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Full text of "Report and recommendations, 1959-1961"

REPORT AND RECOMMENDATIONS 



of 



The Joint Legislative Interim Committee 



on 



FINANCE AND TAXATION 



* • • 



"-**• 



1959-1961 



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on "Finance and. la.XaTi 



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REPORT AND RECOMMENDATIONS 

of 
The Joint Legislative Interim Committee 

on 

FINANCE AND TAXATION 



* * • 



1959-1961 



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SUITE 14 
iW SENATE WING 
iPlTOL BUILDING 
HONE 224-7510 




FLORIDA LEGISLATIVE INTERIM COMMITTEE 
ON FINANCE AND TAXATION 

P.O. BOX 1386 • TALLAHASSEE 



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The Members of the 1961 Legislature 
Capitol Building 
Tallahassee, Florida 



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Gentlemen: 

In compliance with Section 6, Chapter 59-505, Laws of 
Florida, I have the honor and pleasure to present herewith 
the Report and Recommendations of the Joint Legislative 
Interim Committee on Finance and Taxation. 

Respectfully submitted, 



J. 



/ (L^ N-esvuuU — ' 
W. C. Herrell 
Chairman 



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SUITE t4 

NEW SENATE WING 

CAPITOL BUILDING 

PHONE 224-7510 




FLORIDA LEGISLATIVE INTERIM COMMITTEE 
ON FINANCE AND TAXATION 

P.O. BOX 1386 • TALLAHASSEE 



Senator W. C. "Cliff" Herrell, Chairman 
Members, Joint Legislative Interim Committee 
on Finance and Taxation 



Gentlemen: 

Pursuant to your instructions, I have the honor to 
present this Report of the activities and recommendations 
of your Joint Legislative Interim Committee on Finance 
and Taxation. 

This compilation is the result of your diligent study 
and exhaustive inquiry J.nto the complex tax structure of 
Florida . 

The Committee's efforts in this endeavor were aided 
materially by the participation and assistance of many 
civic, business and professional organizations; the several 
departments of state and local government; and the Legisla- 
tive Reference Bureau. 

It is appropriate that we recognize the former Committee 
Chairman, Tom Adams, for his contribution in organizing and 
directing the Committee in the early stages of it's activities 
In addition, we must note the outstanding administrative assis- 
tance rendered the Committee by Secretary of the Senate Bob 
Davis and his efficient staff. 

Respectfully submitted, 



William J. Roberts 
General Counsel 



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CHAPTER 59-505 
SENATE BILL NO. 963 



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AN ACT relating to taxation; creating an 
interim legislative committee to study the 
tax structure of Florida ; setting powers 
and duties of same; establishing member- 
ship ; setting an effective date. 

WHEREAS, a sound tax structure is the 
foundation upon which rests and depends the 
services which government, both state and 
local, must provide the people of Florida, and 

WHEREAS, the increasing rate of popu- 
lation growth in Florida, the Federal pre- 
emption of many sources of tax revenue, the 
problems and effects of widespread tax ex- 
emptions, the increased demands for govern- 
mental services, the problems of financing 
local government through ad valorem taxes, 
and business trends all combine to intensify 
and magnify a tax structure in Florida which 
has proved to require expansion and extension 
at every legislative session, and 

WHEREAS, the various laws of Florida 
providing for the levying and collecting of 
taxes, licenses and fees are scattered through- 
out the statute books without any central plan 
or organization, and 

WHEREAS, there has not been any orderly 
process of raising revenue to meet the re- 
quirements of government which has resulted 
in a patchwork tax structure with no provi- 
sion being made for expanding the tax struc- 
ture to meet the increased demands on gov- 
ernment, and 

WHEREAS, because normal growth in gov- 
ernmental services and an increasing popula- 
tion can be expected to continue, and 

WHEREAS, the tax structure of Florida 
should be so organized, constructed and de- 
vised so that normal growth in tax revenue, 
both at the state and local level, will parallel 
the normal growth in governmental services 
as related to an increased population, so that 
it will not be necessary to increase, extend or 
expand the tax structure at every legislative 
session, but only when new and unexpected 
demands are made upon governmental serv- 
ices, and 



WHEREAS, financing government is of 
such magnitude and importance that it is the 
responsibility of the legislature to study and 
provide a sound tax program to the end that 
the burden of taxation may be spread as equit- 
ably as possible over the citizens and business 
interests of the state, and 

WHEREAS, only through study and in- 
vestigation can the legislature inform itself 
of the problems existing in the present tax 
structure and make recommendations for bet- 
ter organization and control so that the vari- 
ous units of government will be assured ade- 
quate revenue to fulfill their legal obligations 
and responsibilities to the citizens of Florida, 
and 

WHEREAS, through a sounder planning, 
organization and administration of the tax 
and revenue laws of the state the tax dollar 
will more efficiently and economically finance 
the services to which the citizens of Florida 
are entitled, NOW, THEREFORE, 

Be It Enacted by the Legislature of the State 
of Florida: 

Section 1. There is hereby created a joint 
legislative interim committee on finance and 
taxation to be composed of twelve (12) mem- 
bers of the legislature to be appointed as fol- 
lows. The president of the senate shall ap- 
point four (4) members of the senate, the 
speaker of the house of representatives shall 
appoint four (4) members of the house of 
representatives ; the chairman of the legis- 
lative council shall appoint four (4) members 
of the legislative council, two (2) of whom 
shall be members of the house of representa- 
tives and two (2) of whom shall be members 
of the senate. Such appointments shall be 
made as soon as practicable after this act shall 
become law. 

When said appointments have been made, 
the committee shall meet, elect a chairman 
and vice-chairman and shall organize in such 
a manner as shall be compatible to the prompt 
dispatch of the business of the committee. 



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The members of the committee shall serve 
from the date of their appointment until pre- 
sentment of their report to the 1961 legisla- 
ture as hereinafter provided; except that the 
committee may be extended throughout the 
1961 regular session of the legislature at the 
pleasure of the president of the senate and the 
speaker of the house of representatives. Va- 
cancies shall be filled by the official appointing 
the vacating member. 

Section 2. It shall be the duty of the com- 
mittee to make a thorough study and investi- 
gation of tax structure of the state of Florida 
including all provisions relating to taxes, li- 
censes and fees, the proceeds of which are 
used to finance state, county or municipal gov- 
ernment or any agencies or subdivisions 
thereof. Particular attention shall be given 
to providing local -governmental units suffi- 
cient revenue sources to permit them to ade- 
quately finance their legitimate functions and 
responsibilities. Further, the committee shall 
study the method by which said tax, license 
and fee provisions of the law are administered 
and determine if a more efficient method of 
administration is feasible. 

Section 3. The committee is authorized to 
assemble such data as is deemed necessary; to 
administer oaths or affirmations ; to issue sub- 
poenas of all types; to hold public hearings; 
to employ counsel, experts and other persons 
necessary to carry out its duties ; to take such 
other proper and necessary actions to carry 
out its purposes and objectives ; and shall have 
all other authority and duties provided by 
chapter 11, Florida Statutes. The various de- 
partments of the state and of the several 
counties and municipalities and subdivisions 
thereof shall, upon request of the committee 
render all possible aid and assistance and shall 
make available all records, equipment and fa- 
cilities required by the committee. 

Section 4. The committee is further author- 
ized to utilize the services, facilities and staff 
of the legislative reference bureau from time 
to time as the committee may deem necessary 
to carry out its purposes and duties. Upon 



such request, the legislative reference bureau 
shall fully cooperate with, and make available 
its facilities and staff to the committee to as- 
sist in carrying carrying out its purposes and 
duties. 

Section 5. The committee may also request 
the assistance of, cooperate, meet and confer 
with all civic, business, and other groups and 
organizations who are interested in or con- 
nected with the problems of state and local 
taxation. The committee may also appoint 
advisory subcommittees composed of inter- 
ested persons to assist the committee in ob- 
taining data and information necessary to 
carry out its purposes and duties. 

Section 6. It shall be the further duty of 
the committee to present each member of the 
1961 legislature, no later than April 1, 1961, 
a complete report of the results of its study. 
Such report shall contain recommendations 
and delineate additional problems for which 
no recommendation is made. These recom- 
mendations shall also be set forth in the form 
of bills properly drawn for introduction and 
presentation to the legislature. 

Section 7. All expenses incident to hearings 
held and investigations made, including sal- 
aries and expenses of employees, shall be paid 
out of general legislative appropriation pro- 
vided in section 11.12, Florida Statutes, and 
mileage and per diem of committee members 
and employees shall be paid at the rate pro- 
vided in section 112.061, Florida Statutes. All 
such expenses, mileage and per diem shall be 
paid by the state treasurer upon warrant 
drawn by the comptroller upon the requisition 
of the chairman of the committee, provided, 
however, such expenses shall not exceed the 
sum of seventy-five thousand dollars ($75,- 
000) during the 1959-61 biennium. 

Section 8. This act shall take effect imme- 
diately upon becoming a law. 

Became a law without the Governor's ap- 
proval. 

Filed in Office Secretary of State June 19, 
1959. 



JOINT LEGISLATIVE INTERIM COMMITTEE ON FINANCE 

AND TAXATION 



Chairman: Senator Tom Adams* 
Vice Chairman: 

Representative Cliff Herrell* 
Senator Charley E. Johns** 
Senator G. T. Melton 
Senator Irlo O. Bronson 
Senator John A. Sutton 
Senator Dewey M. Johnson 



Senator B. C. Pearce 
Representative Beth Johnson 
Representative Reubin O'D. Askew 
Representative George L. Hollahan, Jr. 
Representative Welborn Daniel 
Representative Cliff Herrell 
Representative Emmett S. Roberts 



* Resigned to become Secretary of State. 
** Appointed to fill vacancy created by 
Senator Adams' resignation. 
***Elected to Senate 1960; succeeded Sen- 
ator Tom Adams as Chairman. 
Representative William G. O'Neill of 
the Legislative Council Committee 
succeeded Senator Herrell as Vice 
Chairman. 



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FLORIDA LEGISLATIVE COUNCIL COMMITTEE 
FINANCE AND TAXATION 



**W. C. Herrell, Chairman 
Dr. Arthur Cunkle, Committee Aide 
MEMBERS 
** Dewey M. Johnson 
**B. C. Pearce 

Thos. D. Beasley 
""Emmett S.Roberts 
Irlo O. Bronson 
*Sam M. Gibbons 
'Richard O. Mitchell 
* William G. O'Neill 



ASSOCIATES 
J. Emory Cross 
Wayne E. Ripley 
Reubin O'D. Askew 
Ralph J. Blank, Jr. 
Thomas M. Carney 
A. P. Drummond 
Don Fuqua 
Robert E. Knowles 
James T. Russell 
Verle A. Pope 
Howard Livingston 
Wm. S. Boylston 
Jack C. Inman 



iLegislators requesting to associate with 
Council Committee as of September 1, 
1980. 

* Non-Council Members. 
* "Council Member of Interim Committee 
on same subject. 

The Council Chairman is Ex-Officio a 
Member of the Committee. 



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MEETINGS AND PUBLIC HEARINGS OF THE JOINT 

LEGISLATIVE INTERIM COMMITTEE ON 

FINANCE AND TAXATION 



195.9 






November 28 


Organizational 


Jacksonville 


December 30 


Subcommittee 






Selection of Counsel 


Tallahassee 


1960 






January 14 


Committee meeting 


Tallahassee 


February 27 


Committee meeting 


Miami 


July 14 


Committee meeting 


Jacksonville 


August 4 


Public Hearing 


Orlando 


August 12 


Public Hearing 


Miami 


August 18 


Public Hearing 


Pensacola 


September 2 


Public Hearing 
Subcommittees 


Jacksonville 


September 23 


Property Tax 


Tallahassee 


September 27 


Miscellaneous Tax 


Coral Gables 


October 7 


Excise Tax 


Winter Park 


October 14 


Miscellaneous Tax 






Public Hearing 


West Palm Beat 


October 19 


Property Tax 






Public Hearing 


Cocoa 


October 21 


Excise Tax 


Tallahassee 


October 28 


Property Tax 






Public Hearing 


Sarasota 


November 11 


Excise Tax 


Gainesville 


November 25 


Property Tax 


Boca Baton 


November 25 


Excise Tax 


Boca Baton 


November 25 


Miscellaneous Tax 


Boca Baton 


November 30 


Miscellaneous Tax 






Public Hearing 
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Tampa 



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1961 
January 6 
January 6 
January 6 
January 6 
January 27 
February 21 
February 21 
February 21 
February 21 
March 10 



Property Tax 


Miami 


Excise Tax 


Miami 


Miscellaneous Tax 


Miami 


Full Committee 


Miami 


Property Tax 


Ocala 


Property Tax 


Orlando 


Excise Tax 


Orlando 


Miscellaneous Tax 


Orlando 


Full Committee 


Orlando 


Full Committee 


Jacksonville 



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CIVIC, BUSINESS, PROFESSIONAL & GOVERNMENTAL AGENCIES 

MAKING APPEARANCES AND FURNISHING TESTIMONIALS 

BEFORE COMMITTEE AT PUBLIC HEARINGS. 



Association of Firefighters of Florida 
Association of Florida Domestic Life In- 
surance Companies 
A. M. Kidder & Company 
Associated Industries of Florida 

Carmon S. Boone Realty Company 
City of Pensacola, City Manager 
Civil Service Employees, Retired 
Coral Gables Chamber of Commerce 
County Commissioners, Orange County, 

Board of 
County Commissioners, Palm Beach Coun- 
ty, Board of 
County Commissioners, Sarasota County, 

Board of 
County Commissioners, State Association 

of 
County Commisisoners Tax Committee, 
Dade County 

Federal Service Retired Groups 
Federated Mutual Insurance Company 
Florida Automobile Dealers Association 
Florida Bankers Association 
Florida Boating Federation 
Florida Bottlers of Carbonated Beverages 
Florida's Business 
Florida Cattlemen's Association 
Florida Congress of Parents and Teachers, 
Inc. 



Florida Council of Business and Industry 
Florida Education Association 
Florida Farm Bureau Federation 
Florida League of Municipalities 
Florida Petroleum Council 
Florida Security Dealers Association 
Florida State Chamber of Commerce 
Florida Retail Federation 
Florida State Retailers Association 
Florida Tax Information Association 
Florida Wholesalers Association 
Florida Wildlife Federation 
For Taxpayers : Ben Ervin 

Gondas Corporation 

Greater Miami Manufacturing Association 

Greater Pensacola Chamber of Commerce, 

Retail Merchants Division 
Greyhound Bus Lines 

Hardy, Hardy & Associates, Inc. 
Halifax Area Research Commission 

Johnson Drug Company 

Keyes Industrial Development Company 

League of Women Voters of Florida 
Lewis Bear Company, Inc. 

Martin Company 



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Miami Beach Taxpayers Association 
Miami-Dade County Chamber of Com- 
merce: 

Economic Development Council 

Government Research Council 

Marine Council 

Retail Merchants Division 

National Association of Retired Civil Em- 
ployees ("NARCE") 

Netschert, William B. — 

Unemployment Compensation 

Orlando Manufacturers Association 
Otis, Dr. Arthur S. - 

"Added Revenue Without Burden" 



Sarasota Citizens League 
Sarasota County Livestock Association 
Sarasota County Tax Assessor 
Sarasota County Taxpayers Association 
Sarasota Industrial Council 
Senior Citizens of Florida (Harry New- 
kirk) 
State Comptroller 
State Treasurer 

Tax Assessors Association 

Tax Collectors Association 

T. T. Todd Company 

Timber Enterprises : A. P. Sherrill 

Trailer News Publishing Co. 

Tropical Trailer Sales 



Pace Holland Company 

Palm Beach Resources Development Board 

Pensacola Association of Firefighters 

Pensacola Board of Realtors 

Phosphate Managers Committee 

Pompano Beach Taxpayers Association 

Pratt & Whitney Aircraft Company 

Richards Department Store 

Retail Grocers Association of Florida, Inc. 



Venice Taxpayers League, Inc., The 

Weis-Fricker Mahogany Company 

West Palm Beach Chamber of Commerce, 

Merchants Division 
Wholesale Grocers 

(Space does not permit listing all individ- 
uals who appeared for and in addition to 
the above.) 



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CONTENTS 

I Introduction 15 

II Summary of Recommendations 19 

III Detailed explanation of Recommendations, Suggested 

drafts of Bills 23 

IV Conclusion 102 

V Areas of Study for which no recommendations are made- 
Revenue Estimates 103 



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INTRODUCTION 



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The 1959 Florida Legislature established 
a Joint Interim Committee on Finance and 
Taxation to furnish the 1961 Legislature 
with a comprehensive report on Florida's 
tax structure. The preamble of the act 
creating the Committee clearly indicates 
the magnitude and importance of a sound, 
equitable program for the administration 
of the tax and revenue laws of the state. 
The Committee's function was to bring to 
the 1961 Legislature a plan upon which 
fiscal problems facing the state could bet- 
ter be solved. 

The 1959 act emphasized the need for 
the tax structure of Florida to be reorgan- 
ized in such a way that the normal growth 
of tax revenue, would parallel the growth 
in governmental services, without expand- 
ing the tax structure at each session of 
the legislature^ 

It was acknowledged that this objec- 
tive could only be reached through ex- 
tensive study between sessions. 

Following the mandate of Chapter 59- 
505, Laws of Florida, the Committee out- 
lined these objectives: 

(1) To investigate and evaluate the 
substantive tax laws of Florida, including 
property, excise, licenses and fees. 

(2) To evaluate the revenue sources of 
local governmental units. 



(3) To study tax statutes with the view 
of providing for more efficient administra- 
tion; to eliminate inconsistent provisions; 
and to clarify ambiguous sections. 

(4) To explore (for reference) addi- 
tional revenue sources. 

( 5 ) To plan for a continuous evaluation 
of Florida's tax structure. 

The Legislative Council's Finance and 
Taxation Committee was asked to join in 
the Interim Committee's work to accomp- 
lish these objectives. Following the organi- 
zational meeting, the Committee obtained 
the services of an attorney to direct the 
study and to assist the Committee in re- 
search and evaluation. 

At the outset of the study, the Commit- 
tee sought the assistance of recognized tax 
authorities at Florida's colleges and uni- 
versities. These resources gave the Com- 
mittee authoritative statistical data on cur- 
rent state and local taxation. Each research 
group was assigned an area of study. Re- 
ports were received on Property Taxes, 
Sales, Use and Excise Taxes, Miscellaneous 
Taxes, Fees and Licenses, Municipal Fi- 
nancing, and Intergovernmental Revenue. 

To further facilitate the study, the Com- 
mittee formed three subcommittees to 
work in specialized areas of taxation. The 
Sub-committees and their membership 
were: 



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6 

7 



9 

10 



15 



PROPERTY TAX 
Chairman: Representative William G. O'- 
Neill 
Vice Chairman: Senator Irlo O. Bronson 
Members: Senator Dewey M. Johnson 
Senator John A. Sutton 
Representative George L. Hollahan, Jr. 
Representative Richard O. Mitchell 
Associates: Senator Ralph J. Blank, Jr. 
Representative Robert E. Knowles 
Representative A. P. Drummond 
Representative Jack C. Inman 
EXCISE TAX 
Chairman: Senator Sam M. Gibbons 
Vice Chairman: Representative Welborn 

Daniel 
Members: Senator G. T. Melton 
Representative Reubin O'D. Askew 
Representative Thomas O. Beasley 
Associates: Senator Wayne E. Ripley 
Representative Don Fuqua 
Representative James T. Russell 
MISCELLANEOUS TAX 
Chairman: Representative Beth Johnson 
Vice Chairman: Representative Emmett 

S. Roberts 
Members: Senator B. C. Pearce 

Senator Charley E. Johns 
Associates: Senator J. Emory Cross 
Representative William S. Boylston 
Representative Thomas M. Carney 
The Chairman of the Interim Commit- 
tee was a member ( ex-officio ) of each Sub- 
committee. 



The Committee solicited the assistance 
and advice of civic, professional and pri- 
vate organizations, as well as govern- 
mental agencies. 1 These groups responded 
by forming special tax study Committees, 
collecting valuation information, and tes- 
tifying before the Committee at public 
hearings. 2 

The public hearings enabled the Com- 
mittee members to hear taxpayers present 
and discuss their views on tax problems. 

The information compiled at the public 
hearings was analyzed by the Subcommit- 
tees along with the university study re- 
ports, and committee staff research. Fol- 
lowing the Subcommittees' evaluation, the 
full Committee considered their findings. 

This Report contains the detailed rec- 
ommendations of the Joint Interim Com- 
mittee on Finance and Taxation to the 
1961 Legislature. 

1 See page 11 for list of participants. 

2 See page 9 for list of hearings. 

The findings of the Committee amplify 
the need for sound planning to achieve 
fiscal responsibility, without resort to 
patchwork tax legislation at each session 
of the Legislature. 

Florida's rapid growth and the cost of 
government have kept pace. Through con- 
tinuing efforts, the state can realize a 
sound tax structure which will meet in- 
creased governmental requirements with- 
out increasing and expanding the tax bur- 



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den on Florida's citizens. 

The net worth of this study is not in the 
changes recommended for 1961, but 
rather in the effect of these changes upon 
the ultimate goal of completely overhaul- 
ing Florida's tax structure. 

Improvements must be made, first, in 
the equitable distribution of taxes, and 
second, in the administration of tax Laws. 
The steps taken must follow an orderly 
process to prevent disruption of the struc- 



ture as it is being reshaped. Changes af- 
fecting the distribution of the burden and 
efficient administration must be ap- 
proached in such a way as to preclude the 
creation in one area the problem sought 
to be corrected in another area. 

The Report of this Committee provides 
the basis for a sound, just, and efficiently 
administered tax program. These changes 
are so constructed as to negate "patching" 
in the future. 



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SUMMARY OF RECOMMENDATIONS 

OF THE 

JOINT LEGISLATIVE INTERIM COMMITTEE 

ON FINANCE AND TAXATION 



NOTE: The summary number of each recommendation is keyed to a 
full explanation for ease in reference. 



18 



SUMMARY OF RECOMMENDATIONS OF THE JOINT 

LEGISLATIVE INTERIM COMMITTEE ON 

FINANCE AND TAXATION 



PROPERTY TAX 

1. JUST VALUE BILL 

a. Enactment of a bill which establishes 
criteria for tax assessors to use in reaching 
the just valuation of all tangible property. 

b. Incorporate in bill, millage control 
provision to require proportionate reduc- 
tion of millage as assessments increase. 

c. Repeal Section 193.201, Florida Stat- 
utes, as "just value bill" eliminates the 
need for the so-called "Green Belt Law." 

2. STATE-LOCAL ADVISORY BOARD 
Establish a state - local tax advisory 

board made up of both state and county 
officials. 

3. EXEMPTIONS 

a. Remove property tax exemptions on 
real and personal property used for profit 
making purposes. 

b. Designate Section 1 of Article IX, 
Constitution of Florida as the governing 
provision for statutory exemptions of prop- 
erty on nonprofit corporations. 

c. Plainly specify the extent to which 
property must be used for an exempt pur- 
pose in order to be entitled to exemption. 

d. Amend Section 192.06(3), Florida 
Statutes, to limit educational exemption. 

e. Amend Section 192.06(3), Florida 
Statutes, so that the terms "benevolent and 



fraternal" may be properly considered. 
Amend Section 192.06(11) (a) to delete 
"fraternal and benevolent." 

f. Amend Section 192.06(10), Florida 
Statutes, to provide that the term "com- 
mercial purposes" includes, but is not lim- 
ited to, all rentals. 

4. TANGIBLE PERSONAL PROPERTY 
TAX ON STOCK IN TRADE (Inven- 
tory Tax ) 

a. Provide that inventory be returned 
for assessment under oath at its average 
annual cost value. Basis of assessment for 
tax purposes to be 25 percent thereof. 

b. Repeal provision in Section 205.59, 
Florida Statutes, which imposes 12 mill tax 
on wholesalers, from which retailers are 
exempt. 

5. INTANGIBLE TAX 

a. Reduce rate on Class B intangibles 
from 2 mills to 1 mill. 

b. Provide that both foreign and domes- 
tic corporations register stock holders with 
the State Comptroller annually. 

c. Increase penalty for failure to return 
intangible's from 10 to 25 percent. 

6. NOTICE OF ASSESSMENT 
CHANGES 

a. Provide that county tax assessor file 
with the Clerk of the Circuit Court, list 



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of all properties the assessments of which 
have been lowered from the assessments 
of the immediately preceding year. 

b. Amend Section 193.25, Florida Stat- 
utes to provide that the tax assessor give 
written notice of increased assessments. 

7. MOTOR BOATS 

Repeal Section 200.44, Florida Statutes, 
exempting from taxation, pleasure yachts 
and boats of non-resident owners. 

8. GENERAL PROCEDURAL 
CHANGES (Property) 

Amendments which eliminate inconsist- 
encies, clarify conflicting sections and con- 
form to rulings of Florida Supreme Court. 

SALES, USE AND EXCISE TAX 

9. RECOMMENDATIONS FOR 
CHANGES TO EFFECT BETTER 
ADMINISTRATION AND 
COLLECTION 

a. Amend Section 212.08(8) (a), Flor- 
ida Statutes, to exclude from operation of 
section, school lunches served at institu- 
tions of higher learning and to extend sales 
tax to dormitory rentals at institutions of 
higher learning; define educational insti- 
tutions entitled to exemption. 

b. Amend Section 212.04(1) (2), 212.04 
(06) and 212.12(10), Florida Statutes to 
remove restrictions on admissions limited 
by Federal excise tax. 

c. Repeal Section 212.03(4) (6), Florida 
Statutes, to remove sales tax exemptions 



on lodging and rentals in excess of 180 
days. 

d. Enact new section setting forth leg- 
islative intent that sales tax exemption not 
apply to purchases made by state and fed- 
eral banks. 

10. GENERAL PROCEDURAL 
CHANGES (Sales, Use & Excise Tax) 

Amendments which eliminates inconsist- 
encies, clarify conflicting sections, and 
conform to rulings of Florida Supreme 
Court. 

11. MOTOR VEHICLE LICENSES 

a. Amend Section 320.08(2), Florida 
Statutes, by eliminating the $5.00 license 
fee classification for passenger vehicles. 

b. Amend Section 320.08(10), Florida 
Statutes, to increase dealers demonstration 
tag from $10.00 to $20.00. 

c. Amend Section 320.04, Florida Stat- 
utes, to provide a service charge of 50^ for 
each license plate rather than the 250 
service charge now established. 

12. MOBILE HOMES 

a. Require annual registration of all 
mobile homes under administrative frame- 
work already in existence for motor ve- 
hicles. 

b. Provide $25.00 license tag for mobile 
homes. 

13. TITLE CERTIFICATES 

a. Amend Section 319.32, Florida Stat- 
utes, to increase the cost of obtaining a 
duplicate original title from 50^ to $1.50. 



20 



b. Amend Section 319.23 (5), Florida 
Statutes, for failure to transfer title within 
ten days from $1.00 to $5.00. 

14. DOCUMENTARY STAMP TAX 

a. Amend Section 201.01, Florida Stat- 
utes to require documentary stamps be 
placed on all recordable instruments prior 
to recordation. 

b. Amend Section 201.08, Florida Stat- 
utes, to provide the documentary excise 
tax apply to each $100.00 or fractional 
part thereof. 

15. CIGARETTE TAX (Non Cigarette 
Tobacco ) 

Amend Section 210.02, Florida Statutes 
to extend the excise tax on cigarettes to 
non cigarette tobaccos, such as smoking 
tobacco and cigars; at similar rate of tax- 
ation as cigarettes. 

16. DOG RACING 

Repeal Section 550.162, Florida Statutes, 
which provides a daily operational cost 
allowance to dog tracks. 

MISCELLANEOUS TAXATION 

FEES AND LICENSES 

17. ESCHEATMENT 

Enactment of uniform escheatment law 
to provide for escheat of unclaimed de- 
posits in banks, insurance companies, car- 
riers, private utilities, municipal utilities, 
and court registers to the state school fund. 



18. UNEMPLOYMENT 
COMPENSATION 

Amend Section 443.04(2) (b) relative 
to computation of average weekly wages 
of individual. 

19. AUTOMOBILE TRANSPORTA- 
TION MILEAGE TAX 

Transfer functions of the Comptroller's 
office relative to this tax to Railroad and 
Public Utilities Commission. 

20. FINANCING LOCAL GOVERN- 
MENTS 

a. Just value bill — see explanation num- 
ber 1 

b. Exemption bill — see explanation 

number 3 

c. State-Local Advisory Board — see ex- 
planation number 2 

d. Extension of excise tax on cigarettes 
to non-cigarette tobacco — see ex- 
planation number 15 

e. Consolidation of city and county as- 
sessment process 

f. Require compilation and publication 
of annual reports by municipalities 

21. CONTINUANCE OF TAX STUDY 
The continuous study of Florida's state 

and local tax structure is deemed essen- 
tial. Further steps to establish a sound, 
long range fiscal plan for the state must 
be taken. A similarly constituted Legis- 
lative Interim group is highly recom- 
mended. 



1 



4 



6 



8 



9 



10 



21 



1. JUST VALUE BILL 

a. Enactment of a bill which establishes 
criteria for tax assessors to use in reaching 
the just valuation of all tangible property. 

b. Incorporate in bill, millage control 
provision to require proportionate reduc- 
tion of millage as assessments increase. 

c. Repeal Section 193.201, Florida Stat- 
utes, as "just value" bill eliminates need 
for "Green Belt Law." 
REASONS FOR RECOMMENDATION 

The Committee's recommendation is an 
effort to resolve the problem of fair and 
equitable ad valorem taxation. It is well 
known that the growth experience in this 
state is causing a serious problem in ad 
valorem taxation. 

The current law (Sections 193.11, 199.- 
05, 200.06, Florida Statutes ) provides that 
all taxable property shall be assessed at 
full cash value. The weakness of this 
statutory mandate is recognized by the 
Supreme Court of Florida in the case of 
(Henderson vs. Leatherman, 120 Florida, 
496, 163 Southern, 310. ) The Court char- 
acterized as common knowledge the fact 
that land in Florida was not assessed at 
more than 50% of full cash value. The 
practice was approved by the Court on 
the theory that the purpose of the full cash 
value requirement was to insure uniform- 
ity of taxation. This reasoning antedated 
the adoption of the Florida Homestead 



RECOMMENDATIONS 

Exemption, effective in its present form 
since 1939. Since that time any general 
valuation of all property at less than full 
cash value necessarily favors homesteads. 
(Cosen Investment Company vs. Over- 
street, 17 Southern Second 788.) 

As the Supreme Court of Flordia has in- 
dicated in the previously cited cases, there 
exists no exact definition of full cash value 
under present Florida Statutes. The court, 
in the absence of a Legislative determina- 
tion of same, has refused to define full 
cash value. The Committee feels that the 
term "full cash value" is arbitrary and dis- 
criminatory and that the solution to the 
problem can properly be found in return- 
ing to the Constitutional language of "just 
value." In setting forth the criteria which 
the tax assessors should use in reaching the 
just value of each piece of property, the 
tax assessors will be able to reassess prop- 
erty according to just and proper value, 
and at the same time the taxpaying public 
will be protected from unjustified millage 
increases through a reduction in millage 
proportionate to the increase in assessed 
valuations. This procedure, while insuring 
the continued operation of the homestead 
exemption, will have the effect of placing 
on the tax roll thousands of dollars worth 
of property which is now largely exempt. 

Note: See page 30 for an Analysis by 
county of Florida's 1960 Tax Assessment 
levels. 



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6 



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23 



The studies undertaken by the Com- 
mittee, have pointed out the following 
with respect to property taxation: 

1. Methods of discovering and evaluat- 
ing property reveal a lack of standardiza- 
tion of procedures. 

2. Few, if any counties, conform sub- 
stantially to the statutory requirements 
that all property be assessed at full cash 
value. 

3. Average assessment ratios vary con- 
siderably. 

EXPLANATION 

The bill would, by creating a new Sec- 
tion numbered 193.021, Florida Statutes, 
and amending Sections 193.06; 193.11(1) 
(2); 193.12; 193.13; 193.22; 192.31(1) and 
193.03, Florida Statutes, accomplish the 
following: 

a. Require tax assessors to secure just 
valuation of all tangible personal property 
by applying the following factors: 

1. Present cash value. 

2. Highest and best use. 

3. Location. 

4. Quantity or size. 

5. Cost of property and replacement 
value of improvements. 

6. Condition. 

7. Income. 

8. Other factors affecting value. 

b. Provide for county millage control by 
requiring the reduction of millage propor- 
tionate to the increase of the general level 



of assessed valuation. Establish procedures 
by which millage can be increased not 
more than ten percent; and procedures by 
which millage could be further increased 
to meet emergency needs. 

e. Eliminate the need for statutes al- 
lowing counties to zone certain areas as 
"agricultural" to escape unreasonable as- 
sessment. 

In essence, the current statute allows 
Boards of County Commissioners the op- 
tion of adopting the law. To qualify for 
the benefits set forth therein, the land must 
have been used exclusively for agricultural 
purposes for five years. Under the pro- 
posed just value bill the assessors will 
have the opportunity to take into account 
the use of the property for agricultural 
purposes in reaching just value. 
REVENUE EFFECTS 

The suggested bill operates in the fol- 
lowing manner: Suppose that in 1961 Leon 
County has $75,000,000 in total nonexempt 
valuation, and $40,000,000 in homestead 
exemptions. Then it is reassessed in 1962, 
with nonexempt valuation rising to $160,- 
000,000 and exempt homesteads to $60,- 
000,000; there is $10,000,000 of new prop- 
erty on the rolls for the first time. 

1960 1961 



Nonexempt 
valuation 
Homestead 
exemptions 

TOTAL 



$ 75,000,000 $160,000,000 

40,000,000 60,000,000 
$115,000,000 $220,000,000 



24 



Less new prop- 
erty or improve- 
ments or prop- 
erty removed 10,000,000 

TOTAL $115,000,000 $210,000,000 

The proportionate reduction in millage 
would then be: 

210 

7, - = 1.826 which is the factor by which 

115 

each millage would be divided. 
The school millage of 20 divided by 1.826 
would be 10.953. Whereas 20 mills in 1960 
would yield $1,500,000, 10.953 mills in 
1961 would yield $1,752,480, the increase 
resulting from the broadening of the tax 
base. 

The ten percent increase permitted in 
Section 9 of the just value bill would be 
computed as follows: 110 X 10.953 mills 
equals 12.05 mills. If this rate were levied 
on $160,000,000 of assessed valuation, the 
taxes assessed would be $1,928,000. 

In years when no change was made in 
the general level of assessment, these pro- 
cedures would not be necessary. In years 
when such change was made, it would be 
necessary for the assessor to keep a record 
of the increases in assessments made on 
basis of new property or improvements 
and those withdrawn. In the absence of 
this record, the computation would have 
to be based on the total nonexempt and 
homestead-exempt valuations. 

Suggested draft of the Just Value Bill. 



A BILL 

TO BE ENTITLED 

AN ACT relating to taxation; amending 
Chapter 193, Florida Statutes, by adding 
a new section numbered 193.021, to pro- 
vide for a basis upon which real and per- 
sonal property shall be assessed, and amend- 
ing Sections 193.06, 193.11 (1) (2), 193.12, 
193.13, 193.22 and 192.31 (1), Florida Stat- 
utes, to conform to the basis provided in 
Section 193.021; amending Section 193.03, 
Florida Statutes, to require the reduction 
of millage when assessed valuation is in- 
creased, but permitting increased millage 
under certain procedure ; and repealing 
Section 193.201, Florida Statutes. 

Be it enacted by the Legislature of the State 
of Florida: 

Section 1. Chapter 193, Florida Statutes, is 
amended by adding a new section numbered 
193.021 to read: 

193.021 Method of assessment of property. 
— The county assessor of taxes of the several 
counties shall assess all the real and personal 
property in said counties in such a manner as 
to secure a just valuation as required by Sec- 
tion 1, Article IX of the Constitution of Flor- 
ida. In arriving at a just valuation, the county 
assessor of taxes of the several counties shall 
take into consideration the following factors: 

(1) the present cash value of the property; 

(2) the highest and best use to which the 
property can be put; the present use of the 
property; (3) the location of said property; 
(4) the quantity or size of said property; (5) 
the cost of said property and the present re- 
placement value of any improvements there- 
on; (6) the condition of said property; (7) 
the income from said property, and such other 
factors as may be applicable and which affect 
the value of the property. 

Section 2. Section 193.06, Florida Statutes, 
is amended to read: 

193.06 Land; when and how assessed. — All 
the lands shall be assessed in the county, city 
or town in which the same shall be, and the 
real estate of incorporated companies liable to 
taxation shall be assessed in the county, city 
or town in which same shall be in the same 
manner as real estate of individuals and may 
be returned and sold in the same manner as 
property owned by individuals and shall be 



4 



6 



8 



9 



10 



25 



assessed on the basis provided in Section 
193.021. 

Section 3. Subsection (1) of section 193.11, 
Florida Statutes, is amended to read: 

193.11 Assessment of real and personal 
property; assessors to visit precincts. — 

(1) Between the first day of January and 
the first day of July in each year, the county 
assessor of taxes in each county, with the aid 
of such assistant assessors of taxes as may 
be appointed by the county assessor of taxes, 
shall ascertain by diligent inquiry the names 
of all taxable persons in his county, and also 
all of their taxable personal property, and all 
taxable real estate therein, as of the first day 
of January of such year, and shall make out 
an assessment roll of all such taxable prop- 
erty. And the county assessor of taxes or his 
assistants may make at least one visit to each 
precinct for the purpose of receiving tax re- 
turns after having given ten days' notice by 
publication in a newspaper, if there be a news- 
paper published in the county, of such visit, 
between the first day of January and the first 
day of March. Tax returns by owners or 
agents must be made between the first day of 
January and the first day of April. The coun- 
ty assessor of taxes shall assess all property 
on the basis provided in section 193.021. The 
assessment of tangible personal property shall 
be made separate from the assessment of real 
estate. 

Section 4. Subsection (2) of section 193.11, 
Florida Statutes, is amended to read: 

193.11 Assessment of real and personal 
property; assessors to visit precincts. — 

(2) All steam and electric railroads and tele- 
graph, express, sleeping cars, freight line and 
equipment companies shall be assessed on the 
basis provided in section 193.021 ; provided, 
however, such assessments shall be made in 
the manner and by the officers now provided 
by law. 

Section 5. Section 193.12, Florida Statutes, 
is amended to read: 

193.12 Returning property for taxation; 
failure to make return. — Every person owning 
or having the control, management, custody, 
direction, supervision or agency of property 
of whatsoever character that is subject to tax- 
ation under the laws of this state, shall return 



under oath the same for taxation to the county 
assessor of taxes in the proper county, or to 
other proper officer, on or before the first day 
of April of each and every year, giving the 
character and the value of the same, as re- 
quired by law; upon failure to do so the 
assessment and valuation made by the assess- 
ing officer or officers shall be deemed and held 
to be binding upon such owner or other per- 
son or corporation interested in such property, 
unless complaint is made of such assessment 
and valuation on the day set for hearing com- 
plaints and receiving testimony as to the 
value of any property, real or personal, as 
fixed by the county assessor of taxes. 

Section 6. Section 193.13, Florida Statutes, 
is amended to read: 

193.13 Oath as to personal property; in- 
crease of valuation; complaint. — Every county 
assessor of taxes shall require any person giv- 
ing in the amount or list of his personal prop- 
erty to make oath before him that the same 
is full and correct, and any person refusing 
to take such oath shall not be permitted after- 
wards to reduce the valuation made by such 
county assessor of his personal property for 
that year. The valuation of any item of prop- 
erty, real or personal, by the taxpayer, shall 
in no case prevent the county assessor of 
taxes from determining the value on the basis 
provided in section 193.021, and if he shall 
ascertain or have reason to believe that the 
valuation of any item of property is too small, 
he shall increase the same to its just value. 
When the tax assessor shall raise the value on 
any property or item of property given in by 
any owner or taxpayer under oath, the tax 
assessor shall at once give notice in writing 
by registered mail to such owner or taxpayer, 
such notice to give the amount of the raise 
or increase; provided, however, that a failure 
of the tax assessor to mail any such notice 
shall not in any manner affect the legality 
of any assessment or valuation of any prop- 
erty by the tax assessor, and the legality of 
any such assessment or valuation shall not be 
questioned in any of the courts of this state. 

Section 7. Section 193.22, Florida Statutes, 
is amended to read: 

193.22 Assessment of land, timber and tur- 
pentine rights. — The tax assessor shall ascer- 
tain by personal inspection, where not already 
sufficiently acquainted therewith, the value of 






26 



the lands including the timber thereon when 
the improvements or timber belong to the own- 
er of the land, and assess the same as lands 
at their value based on the provisions of sec- 
tion 193.021 in the name of the owner, occu- 
pant or as unknown and set down in the 
assessment roll following and opposite the de- 
scription of the lands the name of the owner, 
occupant or unknown, and when the land has 
not been returned for assessment on or before 
the first day of April of each year, by the 
owner or legal representative of the owner, if 
the owner or agent be unknown, the assessor 
shall enter the word "unknown" in the col- 
umn of the assessment roll provided for the 
name of the owners, or his or her legal repre- 
sentative. The assessment book as provided by 
the comptroller shall contain an alphabetical 
index in which the assessor shall be required 
to indicate the name of each person whose 
name appears upon the assessment roll, and 
shall indicate opposite such name as indexed, 
the page upon which any tax or taxes may be 
found to be assessed. 

In case any lands shall be timbered, and 
the timber or the right to turpentine the 
timber shall belong to a person other than 
the owner of the land, and the owner of the 
land shall disclose to the assessor the owner 
or owners of such timber or turpentine rights, 
the assessor shall assess the value of the land 
independent and distinct from the value of the 
timber and the turpentine rights or privi- 
leges, and shall assess the value of such timber 
and such turpentine rights or privileges sep- 
arate and distinct from the said land and 
from each other, assessing the value of the 
land and of the timber and of the turpentine 
rights or privileges to the owners respectively 
thereof. If the assessor cannot ascertain the 
name of the owner of such rights he may 
assess them as unknown. And in order that 
this provision shall be effective it is further 
provided that the owner or owners of the land, 
and also the lessees, owner or owners of the 
turpentine or timber rights, shall annually 
furnish the assessor with a description of the 
lands on which such turpentine or timber 
rights exist, and the value of the same, and 
of the timber or turpentine rights, and the 
lease of said turpentine or timber rights shall 
be assessed as personal property. 

When the timber or turpentine rights are 
sold for nonpayment of taxes due thereon, the 



title of the owner of the timber or turpentine 
rights shall pass to the purchaser at the tax 
sale, subject to redemption by the owner 
within six (6) months by paying the amount 
of the taxes and costs, with interest, at the 
rate of six per cent (6%) per annum. 

Section 8. Subsection (1) of Section 192.31, 
Florida Statutes, is amended to read: 

192.31 Powers and duties of comptroller and 
state budget commission as to uniformity. — 

(1) The comptroller shall, under the super- 
vision of the state budget commission, pre- 
scribe and furnish all forms to be used by 
county assessors, tax collectors, clerks of the 
circuit courts and boards of county commis- 
sioners in the assessing and collecting of taxes. 
The county assessors, tax collectors, clerks of 
the circuit courts and boards of county com- 
missioners shall use the forms and pursue the 
instructions which may from time to time be 
transmitted to them by the comptroller. All 
forms furnished by the comptroller for use in 
each county shall be paid for by the comp- 
troller for use in each county shall be paid for 
by the comptroller upon approval by the state 
budget commission as provided by law. The 
comptroller shall have general supervision of 
the assessment and valuation of property, un- 
der the supervision of the state budget com- 
mission, so that all property will be placed on 
the tax rolls and the valuation thereof will be 
uniform and equal, as required by the con- 
stitution, and he shall also have supervision 
over the collection of such taxes. The comp- 
troller shall, upon approval thereof by the 
state budget commission, establish and pro- 
mulgate standard measures of values not in- 
consistent with those standards provided by 
law to be used by tax assessors in all counties, 
including taxing districts, in arriving at as- 
sessments of all property, which standard 
measures of values shall be deemed and held 
prima facie to be the standard measures of 
just valuation contemplated by the constitu- 
tion of this state in matters of taxation, and 
tax assessors and county boards of equaliza- 
tion shall follow and apply such standard 
measures of values in arriving at assessments 
of all property, and the burden shall be upon 
any assessor or county board of equalization 
refusing to follow such standard to overcome 
the presumption by a preponderance of the 
evidence. 



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Section 9. Section 193.03, Florida Statutes, 
is amended to read: 

193.03 Method of fixing millage. — 

( 1 ) After the assessment rolls have been 
prepared on the basis required by law, the 
board of county commissioners and the board 
of public instruction and all other governing 
boards or governing authorities of all other 
taxing districts, including municipalities, 
whose taxes are assessed on the tax roll pre- 
pared by the county assessor, shall for the 
fiscal years 1961-'62 and 1962-'63 reduce the 
millage to be levied by each such governing 
authority from what it was in the preceding 
year proportionate to the increase of the gen- 
eral level of assessed value over the preceding 
year. Provided, however, if in preparing its 
budget for 1961-'62 and 1962-'63, such budget 
making authority determines that the millage 
required for operating funds should be in- 
creased no more than ten per cent (10%) 
more than the millage determined in subsec- 
tion 6 of this section it shall proceed as fol- 
lows: 

(a) The budget making authority shall 
cause to be published, at least one (1) time in 
a newspaper of general circulation published 
in the county or by posting at the courthouse 
door if there be no such newspaper, the fact 
that said increase of not exceeding ten per 
cent (10%) is being proposed. Said advertise- 
ment shall state that the budget making au- 
thority will meet on a day fixed in the ad- 
vertisement, not earlier than one (1) week 
and not later than two (2) weeks from the 
date of the advertisement for the purpose of 
hearing comments and complaints regarding 
the proposed increase and explaining the rea- 
sons for such proposal. Said meeting may co- 
incide with the required public hearing on 
the tentative budget as required by law. 

(b) Each budget making authority shall 
submit its proposed budget and millage in- 
crease to the comptroller who shall verify said 
budget and millage to determine that the pro- 
posed increase does not exceed ten per cent 
(10%) set forth above. 

(2) Provided, further, that in all counties 
of the state having a population of seventy- 
five thousand (75,000) or more, according to 
the latest official statewide decennial census, 
and in which there is now established or may 



hereafter be established a budget commission, 
the budget making authority of such counties 
shall submit their proposed budgets and mill- 
age increase to such budget commission in 
lieu of submitting the same to the comptroller 
and such budget commission shall verify said 
budget and millage increase to determine that 
the proposed increase does not exceed ten per 
cent (10%) as compared to the millage re- 
quired to meet the budget in the preceding 
year. 

(3) In the event any budget making 
authority shall determine that due to impend- 
ing emergencies said authority will require 
funds in excess of those anticipated, and that 
unless additional funds are made available 
the operation of said authority in meeting its 
legal duties and obligations will be seriously 
impaired and provided that such budget mak- 
ing authority has requested and obtained a 
ten per cent (10%) increase as set forth in 
subsections (1) or (2) herein, the said budget 
making authority may apply for an additional 
increase in the millage required to meet the 
budget for operating funds in the following 
manner: 

(a) It shall adopt a resolution calling a pub- 
lic meeting for the purpose of explaining and 
discussing such proposed increase in the mill- 
age required to meet the budget and fix the 
time and place for such meeting, and it shall 
thereupon publish a notice of such meeting 
for two (2) successive weeks in a newspaper 
of general circulation published in the county 
in which the meeting shall be held, which 
meeting shall be held not less than five (5) 
nor more than ten (10) days from the date of 
the last publication of the notice. At the 
meeting the proposed increase in the millage 
shall be explained and discussed by the budget 
making authority and opportunity afforded the 
taxpayers present to discuss and object to the 
same. Such notice shall briefly state the 
amount of increase sought and reasons for 
such increase. 

(b) Such budget making authority shall 
then prepare and record in the minutes of its 
meeting, either general or special, a certificate 
of compliance with the above set forth pro- 
ceeding; and 

(c) Each budget making authority shall sub- 
mit its proposed budget and millage increase 
together with the reasons for requesting the 



28 



additional increase and a certified copy of 
compliance as above required required to one 
(1) of the following commissions: the county 
budget commission in all counties in the state 
having a population of seventy-five thousand 
(75,000) or more, according to the latest offi- 
cial state-wide decennial census, and in which 
there is now established or many hereafter be 
established a county budget commission; or, 
the county review commission which shall be 
created by separate resolution of the board 
of county commissioners and the board of 
public instruction and shall be composed of 
three (3) members of the board of county 
commissioners, one (1) of whom shall be the 
chairman of said board, and three (3) mem- 
bers of the board of public instruction, one 
(1) of whom shall be the chairman of said 
board, and the affirmative vote of a majority 
of the membership of said commission shall 
be required to approve any additional in- 
crease. 

(d) The commissions as provided in sub- 
section (c) shall have and exercise final 
authority as to whether the proposed addi- 
tional increase shall be allowed and in what 
amount. In exercising this authority the com- 
missions may require additional information 
and data be furnished by the budget making 
authority requesting such additional increase. 
Provided always that the budget making au- 
thority shall have the burden of clearly show- 
ing the extreme need for such increase and 
the existence of the conditions precedent for 
such increase as set forth in this subsection. 

(4) The board of county commissioners and 
board of public instruction and all other gov- 
erning boards or governing authorities re- 
ferred to herein, shall decrease or increase 
the millage to be levied for the years 1961- 
'62, 1962-'63 in compliance with this section; 
provided, however, nothing in this section 
shall be construed to authorize an increase in 
millage in excess of the maximum millage 
permitted by law nor to prevent the reduc- 
tion of millage lower than required by this 
section. 



(5) All references to millage and reduction 
of millage contained in this section shall ap- 
ply to all millages levied on the basis of county 
tax assessors' rolls whether such millage is 
levied pursuant to local, special or general 

law. 

(6) The provisions of this section shall 
apply when there has been an increase in the 
general level of assessed value. The ratio by 
which all millages assessed in the preceding 
year shall be divided in order to secure the 
reduction proportionate to the increase in the 
general level of assessed value shall be the 
ratio of the total value of assessed valuation 
in the current year to the total of assessed 
valuation in the preceding year. Such totals of 
assessed valuation shall exclude the value of 
all property and improvements not assessed 
in both years. The tax assessor shall maintain 
a separate list of all properties and improve- 
ments which are added to the tax rolls each 
year and a separate list of properties and im- 
provements which are withdrawn from the 
rolls. The assessor shall certify to each budget 
making authority the ratio by which all mill- 
ages must be reduced in order to comply with 
this section. If any budget making authority 
is dissatisfied with the tax assessor's deter- 
mination of such ratio such authority may 
request the comptroller to review the tax rolls 
and to determine the proportion by which the 
millages must be reduced to comply with this 
section. Such authority may then fix the mill- 
age based on the comptroller's determination. 

Section 10. It is declared to be the legis- 
lative intent, that, if any section, subsection, 
sentence, clause or provision of this act is 
held invalid, the remainder of the act shall not 
be affected. 

Section 11. All laws or parts of laws in 
conflict herewith are repealed. 

Section 12. Section 193.201 Florida Statutes 
is hereby repealed. 

Section 13. This act shall take effect Jan- 
uary 1, 1962. 



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. 



ANALYSIS BY COUNTY OF FLORIDA'S 

(Compiled and prepared by Ray E. Green, State Comptroller, Tallahassee, Florida, 



Value 
Non-exempt 
Real Estate 



Value 
Personal 
Property 



Assessed Value 

Railroad and 

Telegraph 

Property 



Total 

All Non-Exompt 

Property 

Cols. 1, 2, 3 



Alachua. . . . 

Baker 

Bay 

Bradford . . . 
Brevard .... 
Broward .... 
CalhouD .... 
Charlotte. .. 

Citrus 

Clay 

Collier 

Columbia. . . 

Dade 

DeSoto.... 

Dixie 

Duval 

Escambia. . . 

Flagler 

FraDklin.. . . 
Gadsden. . . . 

Gilchrist 

Glades 

Gulf 

Hamilton . . . 

Hardee 

Hendry 

Hernando. . . 
Highlands. . 
Hillsborough 

Holmes 

Indian River 
Jackson .... 

Jefferson 

Lafayette. . . 

Lake 

Lee 

Leon 

Levy 

Liberty 

Madison .... 

Manatee 

Marion 

Martin 

Monroe 

Nassau 

Okaloosa. . . 
Okeechobee . 

Orange 

Osceola 

Palm Beach . 

Pasco 

Pinellas 

Polk 

Putnam .... 
St. Johns. . . 
St. Lucie... 
Santa Rosa. 

Sarasota 

Seminole 

Sumter 

Suwannee... 

Taylor 

Union 

Volusia 

Wikulla. . . . 

W.lton 

Washington. 



60,933 

3,746 

30,286 

5,574 

235,010 

575,328 

2,245 

19,741 

18,590 

15,288 

146,130 

9,451 

,631,004 

6,758 

5,592 

290,923 

261,328 

4,002 

6,413 

. 25,437 

1,704 

2,865 

5.123 

2,309 

11,116 

11,507 

11,185 

25,636 

353,801 

2,638 

27,360 

7,359 

6,826 

1,760 

54,517 

118,694 

59,724 

9,563 

3,130 

5,700 

75,309 

36,522 

91,697 

55,715 

10,406 

13,610 

8,022 

371,120 

87,623 

839,906 

61,461 

622,882 

473,033 

24,787 

17,453 

142,380 

5,775 

205,640 

150,927 

5,524 

6,463 

6,399 

2,245 

138,347 

2,234 

4,936 

3,077 



100 
760 
459 
820 
850 
550 
935 
730 
010 
660 
950 
470 
950 
960 
689 
140 
970 
835 
399 
155 
460 
500 
260 
650 
820 
880 
750 
770 
612 
352 
210 
495 
420 
280 
880 
210 
500 
520 
200 
530 
340 
770 
700 
400 
360 



250 
810 
520 
425 
000 
880 
960 
520 
660 
460 
655 
960 
790 
248 
295 
935 
340 
945 



472 
799 
732 
682 
966 
938 
801 
893 
407 
797 
235 
.567 
,130 
,313 
992 
,582 
851 
,191 
,109 
,360 
627 
066 
854 
,090 
695 
253 
265 
629 
,190 
054 
,749 
,483 
,777 
605 
,265 
,189 
,989 
,349 
920 
,456 
,968 
,335 
,855 
,221 
,097 
617 
379 
240 
045 
754 
757 
594 
328 
634 
144 
088 
6,413 
22,606 
20,813 
1,465 
7,253 
8,906 
516 
38,466 
961 
2,179 
2,101 



14 
2 

24 
92 

2 
3 
3 

5 

3 

364 



122 

172 

3 

1 



12 
7 
5 
1 

63 

15 

94 
3 

64 
177 

17 
5 

18 



350 
450 
458 
920 
481 
541 
800 
350 
831 
940 
950 
090 
650 
670 
534 
020 
280 
913 
851 
607 
772 
520 
361 
796 
800 
090 
103 
905 
660 
649 
946 
236 
050 
470 
070 
890 
650 
400 
088 
620 
590 
065 
594 
710 
850 
930 
410 
885 
159 
720 
829 
560 
428 
490 
620 
540 
820 
566 
180 
209 
223 
203 
262 
453 
637 



4,728 

1,013 

1,103 

997 

4,686 

2,049 

19 

864 

2,801 

1,099 

1,256 

1,330 

6,238 

1,026 

1,014 

14,823 

9,129 

796 

304 

2,192 

432 

689 

233 

312 

1,000 

386 

1,451 

1,865 

9,985 

870 

743 

1,117 

941 

80 

2,580 

1,674 

1,149 

1,459 

685 

979 

1,228 

3,515 

3,145 

122 

2,753 



3,934 

960 

9,954 

3,674 

2,964 

15,264 

2,772 

2,067 

2,820 

439 

1,253 

3,937 

1,937 

1,644 

1,138 

421 

3,689 

96 

433 

161 



465 
868 
721 
578 
992 
402 
511 
916 
329 
316 
371 
421 
490 
235 
998 
142 
332 
710 
896 
311 
368 
165 
534 
068 
626 
495 
515 
400 
729 
515 
626 
814 
152 
094 
293 
250 
106 
208 
758 
780 
930 
406 
841 
550 
719 
278 
049 
356 
435 
150 
500 
386 
674 
729 
868 
554 
313 
927 
929 
811 
976 
183 
009 
399 
164 
685 
559 



82 


133, 


5 


560, 


46 


122, 


9 


255, 


264 


664, 


670 


316, 


3 


067, 


23 


499 


24 


799, 


20 


185 


152 


623 


14 


348 


2,001 


374 


9 


098 


7 


600 


428 


328 


443 


309 


7 


991 


7 


828 


35 


990 


2 


764 


4 


621 


13 


211 


3 


712 


13 


813 


16 


147 


15 


902 


34 


132 


476 


978 


5 


563 


33 


853 


13 


960 


9 


544 


2 


445 


68 


363 


137 


558 


74 


863 


15 


372 


4 


736 


8 


136 


86 


506 


52 


373 


104 


699 


68 


059 


20 


257 


20 


037 


10 


265 


443 


295 


103 


628 


944 


615 


68 


894 


690 


441 


665 


626 


45 


194 


24 


666 


163 


290 


12 


628 


229 


501 


175 


678 


8 


927 


15 


362 


16 


444 


3 


182 


180 


503 


3 


292 


7 


549 


5 


341 



915 
078 
638 
318 
323 
493 
276 
996 
170 
916 
271 
981 
090 
865 
221 
302 
582 
458 
146 
073 
600 
185 
155 
514 
246 
465 
368 
075 
001 
516 
782 
545 
622 
844 
243 
350 
256 
128 
046 
930 
860 
241 
135 
660 
929 
868 
949 
321 
654 
120 
139 
466 
527 
219 
368 
054 
653 
153 
569 
675 
159 
176 
519 
147 
736 
487 
323 



$ 7,539,826,204 



$ 1,686,092,976 



168,123,910 



$ 9,384,043,090 



$ 3,907,712,105 



30 



1960 TAX ASSESSMENT ROLLS 

from recapitulations of county tax rolls filed with him as required by law) 



Total Value 
for Interest and 
Sinking Funds 

Cols. 4 and S 



Valuation of 

Land Wholly 

Exempt 



Value of Lands 
to Trustees 
I. L Fund 

Chapter 18296 



Value 
Delinquent 



10 

Value 

Delinquent 

Non-exempt 

Property 



11 

Total 

Valuations 

Columns 

7, 8, 9, and 10 



12 

Total Value 

All Property 

in County 



123 



13 

358 

993 

6 

34 

32 

30 

163 

25 

2,800 

14 

9 

711 

5S7 

9 

10 

51 

3 

5 

16 

3 

21 

19 

23 

46 

784 

11 

50 

22 

12 

3 

106 

182 

116 

19 

6 

13 

150 

80 

119 

88 

28 

42 

13 

664 

122 

1,150 

102 

1,124 

820 

64 

39 

197 

27 

311 

222 

15 

22 

21 

4 

295 

5 

16 



,443,265 
,988,968 
,047,478 
,689,148 
869,273 
525,633 
,316.606 
346,146 
,211,160 
442,406 
064,501 
058,851 
,748,480 
536 , 555 
315,136 
512,642 
025,092 
446,018 
512,051 
168,418 
717,260 
255,565 
299,305 
803,384 
493,966 
820,235 
223,201 
948,575 
237,659 
242,349 
595,362 
963,840 
625,172 
592,874 
185,043 
191,000 
545,566 
469,178 
15?, 946 
309,550 
540,290 
073,311 
204,085 
089,800 
511,909 
069,998 
344,039 
496,981 
151,369 
696,480 
803,419 
248,426 
441,988 
474,259 
682,968 
195,294 
338,803 
827,523 
023,469 
259,330 
890,392 
047,173 
649,699 
044,267 
147,226 
390,987 
165,853 



74,400,000 

1,446,700 

27,613,675 

202,570 



8,025,650 

588,600 

1,984,800 

1.833,550 

17,415,720 

10,429,600 

200,380 

525,681,160 

4,119,460 

116,830 

122,562,480 

167,630,990 

473,745 

1,718,571 

12,040,345 

218,060 

286,090 

889,460 

1,836,351 

1,498,500 

864,030 

64,970 

2,662,185 

160,705,940 

1,858,175 

1,379,355 

2,340,325 

180,910 



6,162,790 
11,818,940 



781,200 

1,975,300 

1,678,450 

13,544,990 

789,980 

7,381,760 

37,378,160 

1,696,420 

152,150 

1,659,260 

3,129,590 

2,500,000 

24,162,250 

2,579,500 

88,198,280 

40,290,203 

4,870,730 

2,642,220 

10,123,860 

200, 120 

10,206,300 

31,398,490 

1,292,615 

730,157 

1.412,721 

26,345 

21,756,080 

1,467,740 

3,279,685 

217,125 



$ 13,291,755,195 



% 1,488,772, 



14,400 

510 

425 

370 

3,375 

4,492,190 

400 

50 

870 

340 



4,490 



260 
2,820 
14,100 
5,000 

100 
2,198 
7,680 



4,580 

1,240 

83,470 

660 



42,780 
1,930 

11,910 

8,050 

6,410 

170 



740 

150 

50 

676,320 

23,730 



135,190 

38,220 

10,550 

5,680 

20 

200,000 

38,200 



18,590 
8,440 
9,240 
1,130 
1,010 
50 

12,780 
2,230 

12,535 
290 



3,860 

2,980 

11,060 

110 



5,929,593 



12,600 



25.000 



3,270 
1,203,500 



800 



17,700 
1,800 



,660 
400 



100 
7,100 



212,714 



2,800 



2,000 
3,300 
55,800 
5,000 



4,000 
2,140 



96,100 



9,410 



1,200 



1,673,394 



5,800 
200 



911,445 



640 

21,350 

490 

540 



2,730 



82 
8,920 
5,000 
13,610 
21,500 
14,810 



21,930 



1,910 

3,460 

260 

35,680 



1,560 
740 
1,070 
4,105 
2,600 



2,580 
420 



300 



5,670 



13,430 
14,900 
14,480 
7,690 



76,030 



880 
8,220 
1,820 
4,200 
1,290 
160 
475,690 



1,680 
40 



,210 



1,718,122 



74,432,800 

1,447,210 

27,614,300 

202,940 

939,820 

12,517,840 

589,640 

2,009,470 

3,038,410 

17,416,600 

10,429,600 

208,400 

525,681,160 

4,119,720 

119,732 

122,585,500 

167,658,690 

489,255 

1,742,269 

12,069,495 

218,060 

308,420 

889,460 

1,842,941 

1,510,300 

947,760 

314,024 

2,662,185 

160,750,280 

1,860,845 

1,392,335 

2,355,280 

189,920 

170 

6,166,350 

11,824,040 



781,940 

1,975,750 

1,678,500 

14,221,310 

819,380 

7,381,760 

37,528,780 

1,752,840 

232,980 

1,677,630 

3,129,610 

2,700,000 

24,276,480 

2,579,500 

88,198,280 

40,309,673 

4,891,390 

2,655,420 

10,129,190 

202,420 

10,206,510 

31,983,060 

1,294,845 

742,692 

1,414,691 

26,345 

21,769,390 

1,470,720 

3,300,155 

217,235 



197, 

8, 

106, 

13, 

359, 

1,008, 

6, 

36, 

35, 

47, 

173, 

25, 

3,326, 

18, 

9, 

834, 

754, 

9, 

12, 

63, 

3, 

5, 

17, 

5, 

23, 

20, 

23, 

49, 

944, 

13, 

51, 

25, 

12, 

3, 

112, 

194, 

116, 

20, 

8, 

14, 

164, 

80, 

126, 

125, 

30, 

42, 

15, 

667, 

124, 

1,174, 

105, 

1,212, 



42, 

207, 

27, 

322, 

254, 

16, 

23, 

22, 

4, 

316, 



$ 1,498,093,697 



$ 14,789,848,892 



,876,065 


Alachua 


,436,178 


Baker 


,661,778 


Bay 


,892,088 


Bradford 


,809,093 


Brevard 


,043,473 


Broward 


,906,246 


Calhoun 


,355,616 


Charlotte 


,249,570 


Citrus 


,859,006 


Clay 


,494,101 


Collier 


,267,251 


Columbia 


,429,640 


Dade 


,656.275 


De Soto 


,434,868 


Dixie 


,098,142 


Duval 


,683,782 


Escambia 


,935,273 


Flagler 


,254,320 


Franklin 


,237,913 


Gadsden 


,935,320 


Gilchrist 


,563,985 


Glades 


,188,765 


Gulf 


,646,325 


Hamilton 


,004,266 


Hardee 


,767,995 


Hendry 


,537,225 


Hernando 


,610,760 


Highlands 


,987,939 


Hillsborough 


,103,194 


Holmes 


,987,697 


Indian River 


,319,120 


Jackson 


,815,092 


Jefferson 


,593,044 


Lafayette 


,351,393 


Lake 


,015,040 


Lee 


,545,566 


Leon 


,251,118 


Levy 


,134,696 


Liberty 


,988,050 


Madison 


,761,600 


Manatee 


,892,691 


Mar on 


,585,845 


Maritin 


,618,580 


Monroe 


,264,749 


Nassau 


,302,978 


Okaloosa 


,021,669 


Okeechobee 


,626,591 


Orange 


,851,369 


Osceola 


,972,960 


Palm Beach 


,382,919 


Pasco 


,446,706 


Pinellas 


,751,661 


Polk 


,365,649 


Putnam 


,338,388 


St. Johns 


,324,484 


St. Lucie 


,541,223 


Santa Rosa 


,034,033 


Sarasota 


,006,529 


Seminole 


,554,175 


Sumter 


,633,084 


Suwannee 


,461,864 


Taylor 


,676,044 


Union 


,813,657 


Volusia 


,617,946 


Wakulla 


,691,142 


Walton 


,383,088 


Washington 




4 



6 



8 



_9 
10 



31 



ANALYSIS BY COUNTY OF THE 1960 AD VALOREM) 
DIVISIONS OF GOVERNMENT BY WHOM 

(Compiled and prepared by Ray E. Green, State Comptroller, Tallahassee, Floi 



County Millage 



Maint. 



I.&S. 



County Tax 

Maintenance 



County Tax 
I. AS. 



Special Road 

Districts 
Maintenance 



Total Tax 

for County 

Commissioners 



General School 
Millage 



Maint. 



I.&S. 



Alachua 

Baker 

Bay 

Bradford 

Brevard 

Broward- - - . 

Oalhoun 

Charlotte 

Citrus 

Clay 

Collier 

Columbia . . . 

Dade 

De Soto 

Dixie 

Duval 

Escambia 

Flagler 

Franklin 
Gadsden 
Gilchrist. . . . 

Glades 

Gulf 

Hamilton 

Hardee 

Hendry 

Hernando. . . 
Highlands. . 
Hillsborough 

Holmes 

Indian River 

Jackson 

Jefferson 

Lafayette. . . 

Lake 

Lee 

Leon 

Levy 

Liberty 

Madison. . . 
Manatee 

Marion 

Martin 

Monroe .... 

Nassau 

Okaloosa . . . 
Okeechobee. 

Orange 

Osceola .... 
Palm Beach . 

Pasco 

Pinellas .... 

Polk 

Putnam 

St. Johns. . . 
St. Lucie. . . 
Santa Rosa. 

Sarasota 

Seminole . . . 

Sumter 

Suwannee. . 

Taylor 

Union 

Volusia 

Wakulla.... 

Walton 

Washington. 



14.23 
20.00 

19.00 
17.25 

7.13 

7.60 
31.50 
23 12 
17.2167 

9.32 

2 15 
16 60 
16.91 
16.92 
12 75 
21.6711 

7.64 

4.70 

12 50 
7.50 

18.50 

13 45 
12.80 
34.00 
25 00 
11 75 
17.70 
16.75 
20.53 
17.00 
16.10 
30.00 
10.00 
13.00 
21.40 
10.529 
12.25 
12.94 
10.00 
13.20 
19.369 
15.94 

7.51 

12.20 

14.70 

24.50 

17.25 

10.70 
2 16 
5 711 
6.S75 
9.10 
8.269 

17.55 

19.00 
5 50 

37.35 

12.731 
6.00 

15 50 

21.50 

13.4583 

14.00 

10.85 

10.00 

24.25 

24.00 



1 07 
5.00 



.20 
1.00 
3.00 

.30 



2.00 
2.24 



1.6191 
.45 



1.50 



1.25 

.62 

2.00 

1.78 



1.009 
2.75 



.065 

.20 

.80 

1.13 



2.50 
.90 
.24 
.079 
.75 



.031 


1 75 


11.25 
1.27 


1.10 


.875 






2,76 



t 1,168,765 

111,201. 

876,330. 

159,654 

1,887,056 

5,094,419. 

96,619. 

543,864 

426,955. 

188,531 

328,140 

238,227. 

33,998,243. 

154,176. 

97,892. 

9,285,907. 

3,387,013 

37,560. 

97,851 

269,925 

51,145 

62,154 

169,102 

126,225 

345,331. 

190,362 

281,475. 

571,845 

9,792,358 

94,580 

546,374 

419,027 

95,891 

31,795 

1,462,983 

1.448,352 

917,074 

198,915 

51,860 

108,368 

1,677,134 

836,251 

830,265 

833,629 

297,791 

493,476 

177,087 

4,740,032 

223,837 

6,397,939 

475,707 

6,285,679 

5,504,065 

794,436 

470,488 

898,095 

471,680 

2,922,320 

1,055,428 

138,381 

330,379 

221,310 

44,555 

1,961,446 

33,063 

183,866 

128,407 



$112,840,323.36 



87,883 29 
230,613 20 



52,932 87 

686,579.76 

9,201.83 

10,310 90 



28,702 07 
4,483,077,97 



693,772.45 
199,496.86 



11,742.22 



42,675 07 

295,726.36 

11,127.09 

60,406.58 



138,796.38 
205,873.96 



9,785.12 



20,939 86 
54,664.20 
22,891 46 



33,360.13 
398,694.32 
24,871.49 
74,669.45 
51,895.39 



20,634.42 
43,334.47 



142,072.35 
297,284.17 



9,820 62 
14,388.65 



20,850.86 



511,877 81 



9,274.07 



413,046.03 



114,371.52 
92,589.44 



$ 8,489,075.82 



$ 1,174,158.87 



1,256, 

111, 

1,106, 

159, 

2,484, 

5,780, 

105, 

554, 

426, 

188, 

328, 

266, 

38,481. 

154 

107. 

9,979, 

3,586 

37 

109 

269 

51 

62 

169 

126 

345 

190 

281 

614 

10,088 

105 

606 

419 

95 

31 

1,462 

1,587 

1,122 

198 

51 

108 

2,099 

836 

851 

888 

320 

493 

210 

5,138 

248 

5,472 

527 

6,285 

5,524 

794 

513 

1,012 

613 

3,312 

1,055 

148 

330 

235 

44 

1,961 

33 

204 

128 



648.90 
201.56 
943.31 
654.23 
867.31 
998.96 
821.03 
175 84 
955.47 
531.26 
140.03 
929.24 
321.08 
176.09 
166.94 
679.67 
510.14 
560.81 
594.04 
925.55 
145,10 
154 90 
102.79 
225.47 
331.15 
362.77 
475.04 
520.96 
084.81 
707.32 
780.95 
027.55 
891.06 
,795.97 
,983.40 
,148.77 
,948.86 
,915.35 
.860.00 
,368.55 
,966.13 
.251.33 
,205 35 
,293.31 
,683.02 
,476.84 
,447.75 
726.80 
709.47 
,608.76 
,603.15 
,679.32 
700.17 
,436.12 
823.05 
,466.82 
752.53 
194.48 
428 89 
202.39 
379.56 
,699.32 
555.27 
446 90 
,063.84 
717 53 
,407.72 



$122,503,558.05 



9.50 
10.00 
10.00 
10.00 

9 50 
9.98 

10 00 
6.00 
9,00 
9.00 
3 40 
•10.50 
9.00 
10.00 
6.00 
10.00 
4.50 
6 00 
10.00 
3.00 
10.00 
10 00 
10.00 
10.00 
10 00 

8 50 
10.00 
10.00 
10 00 
10.00 
10.00 
10.00 
10.00 

8.00 
10.00 
9.51 
10.00 
4.00 
7.00 
10.00 
10.00 
10.00 
3.00 
9.00 
10.00 
10.00 
4.00 
7.00 
4.00 
4.07 
3 00 
9.50 
3.37 

10 00 
10.00 

3.00 
8,50 
10.00 
3.00 
10 00 
10 00 
9.00 
6 00 
9.00 
10.00 
10.00 

9 00 



1.00 



' Includes University of Florida Ranger School. 



32 



TAX ROLLS, MILLAGES LEVIED, TAXES ASSESSED, 
ADMINISTERED, AND PURPOSE OF SUCH LEVIES 

ida, from recapitulations of county tax rolls filed with him as required by law) 



General 
School 
I. AS. 


Special 

School 

Districts 

Maintenance 


Special 
School 
Districts 
I. &S. 


Building and 
Bus Reserve 


Total for 
School Board 


Other 
Special 
Taxing 
Districts 


Municipal 
Taxes 


Grand Total 
All Taxes 




{ 


$ 821,339.15 

33,359.87 

461,226.38 

74,042.55 


$ 208,593.50 

92,245.28 

37,021.27 

412,307.29 

1,617,205.95 


$ 


$ 1,810.204.85 


$ 24,640.17 


$ 


% 3,091,493.92 

222,402.52 

2,138,812.36 

381,781.86 

6,006,232.33 

30,274,317.88 

168,700.19 

995,230.09 

870,628.36 

574,063.38 

1,360,703.35 

704,594.72 

82,858,251.44 

345,910.07 

236,836 62 

19,803,666.07 

8,009,540.85 

177,151.34 

266,156.96 

761,900.47 

108,539.48 

224,118.63 

470,881.78 

203,342.99 

633,594.02 

629,441.17 

599,524.16 

1,309,316.82 

28,377,404.76 

216,977.91 

1,815,031 65 

714,786.36 

239,727.65 

70,929.47 

3,134,956.48 

4,357,084.46 

2,686,873.98 

384,303.21 

103,720.00 

274,907.11 

4,401,531.71 

1,954,420.29 

1,878,818.11 

2,558,718.98 

850,809.20 

896,463.26 

364,904.01 

13,436,074.46 

948,208.18 

15,663,577.70 

1,491,404.25 

30,132,256.16 

12,782,572.23 

1,705,433.28 

1,218,734.40 

2,438,603.11 

929,468.86 

6,591,238 38 

2,207,827.30 

334,007.29 

706,394.06 

605,693 28 

95,475.57 

11,807,163.89 

77,700.00 

356,033.70 

239,139.70 






22,240.31 


111 

1.014 

222 

2,926 

15,030 

61 

423 

347 

383 

984 

437 

42,877 

191 

129 

9,430 

4,307 

127 

156 

491 

57 

92 

293 

77 

288 

313 

31S 

6 6 

9,610 

111 

797 

295 

143 

39 

1,648 

2,109 

1,563 

184 

51 

166 

2,129 

1,113 

787 

1,567 

483 

402 

147 

7,973 

621 

7,627 

930 

12,778 

7,156 

904 

642 

1,090 

315 

3,222 

1,143 

185 

314 

369 

50 

3,479 

44 

151 

110 


200.96 
698.04 
127.63 
618.42 
058.42 
345.52 
423 . 63 
188.39 
917.24 
420.10 
665.48 
940.78 
005.02 
669.68 
682.07 
765.86 
864.73 
562.92 
974.92 
394.38 
423.67 
948.19 
117.52 
262.87 
811.24 
049.12 
599.04 
856.84 
270.59 
502.90 
758.81 
836 59 
133 50 
728.24 
268.25 
925.12 
465.54 
860.00 
538.56 
731.51 
821.86 
496.00 
807.53 
149.94 
986.42 
059.27 
886.39 
774.11 
625.65 
647.09 
578.81 
816.43 
612.34 
287.46 
777.56 
716.33 
795.92 
343 32 
804.90 
565 86 
993.96 
920 30 
987.12 
636 16 
316.17 
731 98 








17,171.01 




Bay 




18,510.63 




Bradford 




591,746.60 

3,277,946.97 

1,533.64 

17,630.62 

96,484.50 

1,614.88 

48,143.22 






19,910 75 


6,703,164.93 

30,672.76 

235,235.36 

123,995.86 

201,859.16 

213,672.58 

143,489.81 

20,013,740.90 

91.120.61 

68,401.99 

4,284,897.70 

1,773,238.31 

79.914.76 

78,281.46 

359,900.73 

19,352.19 

46,211.85 

132,111.55 

37,125.14 

138,132.46 

145,327.18 

159,023.68 

341,320.75 

4,769,780.01 

55,635.16 

339,362 93 

139,675.85 

47,945.53 

19,566.75 

546.909.88 

392,041.30 

748,632 56 

76,860.64 

15,558.00 

81,369.30 

866,927.62 

523,732.41 

261,620.86 

680,596 60 

202,579.29 

201,567.30 

102.659.49 

3,543,949.50 

207,259.32 

2,599,252.87 

688, 94). 39 

4,835,137.92 

4,554,882.33 

316,359 53 

246,663.68 

489,870.16 

126,286 53 

459,088.68 

175,896.35 

89,278.40 

153,621 59 

115,109.23 

31,825.19 

858,698.23 

11,572.33 

75,494.87 

48,071.90 




6,185,313.53 












47,047.05 
























Clay 




251,828.40 

142,489.81 

4,769,333.64 

8,763.79 

15,200.45 

860,857.87 

539,558.99 






Collier 














1,498,989.58 
723.96 




Dade 








De Soto 














393,304.33 

115,264.85 

11,725.80 




















Flagler 












24,103.97 
2,102.39 












8,293.80 










69,540.06 
7,830.80 








29,725.09 

2,867.24 

11,997.95 

30,774.83 






Gulf 
























125,267.16 
















3,877.76 
71,296.82 




8,196.82 
95,395.77 










8,583,067.34 












118,777.04 
16,407.11 




406,473.78 


4,274.02 


































281,452.73 
409,046 56 
66,659.99 


136,728.22 


23.244 84 
660,667.44 














46.116.38 








922.32 
















3,071.88 

397,735.29 

65,465.02 

2,480.54 

272,238 64 

77,991.36 














171,834.07 

4,347.10 

240,116.76 

102,618.14 

46,976.24 
















209,296 68 






























3,335.99 
442,993.69 




7,396.99 

323,461.27 

77,724.60 

2,563,343.29 

33,154.01 

88,636.50 

101,055 63 

6,384.82 

60,619.96 

335,358.73 








885,987.38 














472,591.39 
34,124 13 


708,887.12 














1,381,467.98 


10,979,361.53 






358,772.70 


Polk 




135,582.66 








147,998.21 

111,037.24 

63,143.27 

468,270.47 

263,836 18 

7,248.10 

7,279.36 

73,998.79 


2,003.93 












18,942.98 








56,247.98 
9,055.09 








175,896.34 
















61,448 61 








32,888.36 




Taylor 










451,946 54 


542,335.71 


3,611,586 09 


2,754,143.78 






Wakulla 












Walton 


9,165.86 




5,341 33 






Washington 












$ 29,076.61 


$66,510,441.15 


113,798,101.56 


$ 4,328,515.88 


$156,065,956.02 


$15,398,830.03 


$28,508,164.13 


$322,476,508.23 





4 



6 



8 



9 



10 



33 



2. STATE-LOCAL ADVISORY BOARD 

Establish a state-local advisory board 
made up of both state and county officials. 

Members of the board would be the 
State Comptroller, Chairman; Attorney 
General; Secretary of State; five members 
of the Tax Assessors Association appointed 
by the Governor; a member of the Senate 
appointed by President of the Senate; and 
a member of the House of Representatives 
selected by the Speaker of the House. The 
primary duty of this board is to conduct 
ratio studies and assist tax assessors in re- 
evaluation, reassessment and equalization. 
REASONS FOR RECOMMENDATION 

The studies conducted by the Legisla- 
tive Tax Committee have forcefully dem- 
onstrated that local governments are in 
need of assistance to meet the increased 
demands upon them. School requirements 
are imperative in many areas. Municipali- 
ties lack funds for streets and other cap- 
ital purposes. These needs can best be met 
by improving assessment practices and 
broadening the base of the property tax. 
Such an equalization program will greatly 
reduce the inequities so prevalent in Flor- 
ida today. 
FUNCTIONS OF BOARD 

This board will be charged with the 
general supervision over the administra- 
tion of property tax and will promulgate 
rules and regulations to assist tax assessors 
in upgrading the quality of tax assessments 



throughout the state. Advanced assessing 
techniques and practices will be stressed. 
A primary duty of the state-local advisory 
board will be the conduct of a continuous 
investigation and analysis of levels of as- 
sessments in each of the counties of the 
state for each class of property therein. 
This study will proceed primarily on the 
basis of the analysis of actual sales trans- 
actions, indicating the ratios of assessed to 
just value and issuing annual equalization 
recommendations. Another function will 
be to publish the average level of assess- 
ment for all property in each county. This 
state-local board will also recommend 
complete county-wide reassessment when 
necessary. These recommendations will is- 
sue upon finding by the board that county 
assessments are so lacking in uniformity 
as to deny owners thereof due process of 
law. The state-local board will be author- 
ized and directed to provide all possible 
technical assistance to local assessors. 

The current law provides that the Comp- 
troller shall have many of the duties sug- 
gested for the state-local board. It is felt 
that the increased interest generated by 
a board having widespread membership 
will further effectuate the purpose sought 
to be accomplished under the existing law. 
REVENUE EFFECTS 

It should be noted that this board will 
not require an appropriation for its op- 
eration. Contact with the affected indi- 



4 



6 



8 



9 



10 



35 



. 



viduals indicates that the duties can be 
assumed by the personnel already em- 
ployed within the several departments. 
Local governments will benefit greatly 
from the operation of this board which 
will help equalize assessments. The fol- 
lowing comparative analysis of assessment 
levels illustrates the need for an equaliza- 



tion program. 








Analysis by Co 


jnty 








of Florida's Assess- 








ment levels 










Year 


1958 1959 


1960 


of Percentage Percentage Percentage 


Revaluation 


Level Level 


Level 


Alachua 




48.72 


48.72 


48.72 


Baker 




38.75 


38.75 


38.75 


Bay 
Bradford 




43.74 


43.74 


43.74 




40.79 


47.00 


47.00 


Brevard 


1957 


74.00 


74.00 


74.00 


Broward 




51.27 


51.27 


51.27 


Calhoun 




29.78 


29.78 


29.78 


Charlotte 




39.41 


39.41 


39.41 


Citrus 


1958 


*84.69 


84.69 


84.69 


Clay 
Collier 


1959 


41.90 


"51.00 


51.00 


1959 


31.29 


"75.00 


75.00 


Columbia 




54.20 


54.20 


54.20 


Dade 




47.27 


47.27 


47.27 


DeSoto 


1958 


"40.30 


40.30 


40.30 


Dixie 




84.14 


84.14 


84.14 


Duval 




41.64 


41.64 


41.64 


Escambia 


1960 


39.92 


39.92 


"100.00 


Flagler 




26.63 


28.21 


28.21 


Franklin 




30.79 


30.79 


30.79 


Gadsden 


1957 


67.90 


67.90 


67.90 


Gilchrist 




32.48 


32.48 


32.48 


Glades 




29.35 


39.35 


39.35 


Gulf 




32.91 


32.91 


32.91 


Hamilton 




35.42 


35.42 


35.42 


Hardee 


1959 


33.92 


"50.00 


50.00 


Hendry 




40.07 


40.07 


40.07 


Hernando 




37.41 


41.18 


41.18 


Highlands 




39.99 


41.33 


41.33 


Hillsborough 




53.47 


53.47 


53.47 


Holmes 




63.69 


63.69 


63.69 


Indian River 




38.92 


43.47 


43.47 


Jackson 




32.45 


32.45 


32.45 


Jefferson 




40.10 


40.10 


40.10 


Lafayette 




29.90 


29.90 


29.90 


Lake 




37.53 


39.00 


39.00 


Lee 


1956 


63.44 


67.14 


67.14 


Leon 




43.27 


43.27 


43.27 


Levy 




40.66 


40.66 


40.66 


Liberty 


1959 


31.92 


"60.00 


60.00 


Madison 




37.21 


39.00 


39.00 


Manatee 




50.07 


50.07 


50.07 


Marion 




41.10 


43.50 


43.50 



Martin 


1959 1960 


25.61 


"52.00 


"75.00 


Monroe 




31.91 


47.19 


47.19 


Nassau 




43.58 


43.58 


43.58 


Okaloosa 




42.28 


42.28 


42.28 


Okeechobee 


1959 


32.61 


"57.00 


57.00 


Orange 


1956 


52.90 


54.00 


54.00 


Osceola 


1960 


42.59 


42.59 


"100.00 


Palm Beach 


1958 


'100.00 


100.00 


100.00 


Pasco 


1960 


41.13 


41.13 


"60.00 


Pinellas 


1951 


60.07 


60.07 


60.07 


Polk 


1960 


41.43 


41.43 


"80.00 


Putnam 




57.34 


57.34 


57.34 


St. Johns 




30.32 


30.32 


30.32 


St. Lucie 


1960 


27.31 


35.00 


"80.00 


Santa Rosa 




36.59 


36.59 


36.59 


Sarasota 


1958 


"69.99 


69.99 


69.99 


Seminole 


1959 


40.55 


"90.00 


90.00 


Sumter 




34.54 


34.54 


34.54 


Suwannee 




46.80 


46.80 


46.80 


Taylor 




46.78 


46.78 


46.78 


Union 




32.35 


32.35 


32.35 


Volusia 




42.02 


42.02 


42.02 


Wakulla 




38.59 


38.59 


38.59 


Walton 




38.92 


38.92 


38.92 


Washington 




27.44 


27.44 


27.44 



" Revaluation 

Suggested draft of Advisory Board Bill: 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation ; amending 
Chapter 193, Florida Statutes by adding a 
new section numbered 193.022 creating a 
state-local advisory board of property as- 
sessments, enumerating the powers and du- 
ties of the state-local advisory board; pro- 
viding for the conduct of a continuous study 
of assessment ratios; and providing aid 
and assistance to county assessors. 

Be it enacted by the Legislature of the State 
of Florida: 

Section 1. Chapter 193, Florida Statutes, is 
amended by adding a new section numbered 
193.022 to read: 

193.022 The state-local advisory board of 
property assessments; membership, duties. — 
There shall be a state-local advisory board of 
property assessments consisting of the state 
comptroller, who shall act as chairman, the 
secretary of state, the attorney general, a 
county assessor from each state road district, 
approved by the Governor, serving terms 
which coincide with his own. One member of 
the house of representatives, selected by the 
speaker of the house, one member of the sen- 
ate, selected by the president of the senate. 



36 



The board shall be responsible for general 
supervision over the administration of the 
general property tax throughout the state and 
it shall perform such other duties as may be 
provided in this chapter. 

Section 2. Authority of the board to issue 
rules and regulations; failure of a county 
assessor to comply. — It shall be the duty of the 
board to promulgate such rules and regula- 
tions as shall be appropriate and necessary 
for the proper guidance of the several county 
tax assessors and of local boards of review. 

Section 3. Ratio study. — The board shall 
conduct a continuous property tax ratio study 
in all of the counties of the state based primar- 
ily upon analysis of sales transactions but 
supplemented by appraisals for income data 
as the professional judgement of the chair- 
man indicates they are needed. Upon the ad- 
vice of the chairman the board shall promul- 
gate necessary rules and regulations for the 
collection of sales data and such other meas- 
ures as are deemed appropriate. 

Upon being notified each year by county 
assessors of the completion of the assessment 
rolls for their respective counties, the board 
shall determine, statistically, the average level 
of assessments and the degree of uniformity 
with which the county assessments have been 
made for all real property. 

Section 4. Reassessment recommendations. 
— Whenever the board's study of assessment 
ratios reveals such an absence of uniformity 
of county assessments as to constitute in the 
judgment of the board, a denial of due process 
to individual property owners, the board shall 
recommend that the county concerned under- 
take at county expense, a complete county 
wide reassessment of property. Reassessment 
recommendations shall specify the date upon 
which the reassessment should be completed 
and the extent to which the board will partici- 
pate therein. The present section is not to be 
interpreted as denying the individual counties 
the right to proceed independently with re- 
assessments if they so desire. 

Section 5. Equalization data to be issued 
by board. — As soon as practicable after com- 
pletion of the tax rolls in the several counties 
of the state, the board shall, upon recommen- 
dation of the chairman, issue equalization 
data to each county, recommending that the 
county assessor adjust the assessed valuation 



for each parcel in the even dollar amount in- 
dicated by the equalization factor specified in 
the recommendation. 

Section 6. Equalization recommendations to 
be issued by board. — As soon as practicable 
after the completion of the tax rolls in the 
several counties of the state, the board shall, 
if it deems necessary, issue equalization rec- 
ommendations to each county suggesting that 
the county assessor adjust the assessed valua- 
tion for each parcel of the property in the 
even dollar amount indicated by the equaliza- 
tion factor specified in the recommendation ; 
provided, however that the equalization rec- 
ommendation shall be computed exclusively 
upon the objective results of the boards studies 
of assessed to just valuation and that they 
shall be expressed in that nearest whole per- 
centage that will bring the average level of 
assessment for the specified class of property 
to its just value; provided further, that no 
equalization recommendation should issue for 
any class of property for which the county 
average level of assessment according to the 
results of the boards ratio study falls within 
95 to 105 percent of the full market value. 
Upon receipt of the equalization recommenda- 
tions each county assessor shall proceed so as 
to be able to report action taken to the board, 
not later than 90 days after receiving same. 

Section 7. Aid and assistance to county as- 
sessing officer. — The board is authorized and 
directed to provide through the chairman and 
his staff such aid and assistance to local asses- 
sors as shall prove feasible. The assistance 
authorized under the present section may take 
the following forms but is not limited to them: 
The temporary assignment of personnel to 
assist with the assessment of specified prop- 
erty; the provision of technical assistance 
through the rendering of advice ; the provision 
of maps, manuals and other technical aids in 
the provision of courses of instruction in- 
cluding short courses and seminars for asses- 
sors and members of their staff. Provided, 
however, that the allocation of such aid and 
assistance shall be made on the discretion of 
the board acting upon the advice of the chair- 
man. 

Section 8. All laws or parts or parts of laws 
in conflict with this act are hereby repealed. 

Section 9. This act shall become effective 
immediately upon becoming law. 



4 



6 



8 



9 
10 



37 



t 



3. EXEMPTIONS 

a. Remove property tax exemptions on 
real and personal property used for profit 
making purposes. 

b. Designate Section 1 of Article IX, 
Constitution of Florida, as the governing 
provision for statutory exemptions of prop- 
erty of nonprofit corporations. 

c. Plainly specify the extent to which 
property must be used for an exempt pur- 
pose in order to be entitled to exemption. 

d. Amend Section 192.06(3), Florida 
Statutes, to limit educational exemptions. 

e. Amend Section 192.06(3), Florida 
Statutes, so that the terms benevolent and 
fraternal may be properly considered. 
Amend Section 192.06(11) (a) to delete 
fraternal and benevolent. 

f. Amend Section 192.06(10), Florida 
Statutes, to provide that the term commer- 
cial purposes include but not be limited to 
all rentals. 

REASONS FOR RECOMMENDATION: 
This recommendation is to aid local gov- 
ernments. Ad valorem property tax prob- 
lems prominent in many counties are com- 
pounded by numerous exemptions. Inequi- 
ties resulting from the relatively narrow 
tax base impose an even greater burden 
upon remaining nonexempt property. 

Throughout its investigation the Com- 
mittee has become aware of many situa- 
tions in which tax-exempt property is used 
for profit-making purposes. 



For example, a large computer manu- 
facturer in central Florida leases equip- 
ment valued at several million dollars to 
the federal government; this personal 
property is exempt from county taxation. 
A federally owned dry dock leased to pri- 
vate interests in a major seaport is exempt. 
A large housing project in a South Florida 
county operated by a private corporation 
on a lease-purchase contract is exempt. 
These are only a few, but the list goes on 
and on. Competing nonexempt businesses 
are at distinct disadvantages. Not even 
payments in lieu of taxes made to a leas- 
ing authority support local governments. 

Unless exempted by the constitution or 
the Legislature, all real and personal prop- 
erty in Florida is subject to ad valorem tax- 
ation. Throughout the years the scope of 
exemptions has been greatly broadened by 
statute. 

The power to exempt property from tax- 
ation is inherent in the Legislature, limited 
by the Constitution. Because of these lim- 
itations, the Legislature must examine each 
bill purporting to exempt property. In the 
past, exemption statutes of doubtful con- 
stitutionality have been enacted. Self-in- 
terest discourages attacking such a tax ex- 
emption statute and other motivations tend 
to minimize the possibility of attack. As a 
result, a tax exemption statute which vio- 
lates the Constitution may never be tested 
in court. Sections 192.06(12), 192.201, 



4 



6 



8 



9 



10 



39 



192.211, 192.112, 192.113, Florida Statutes, 
should not have been passed despite their 
strong appeal. It is recognized the diffi- 
culty which would be encountered in the 
repeal of these statutes, however, it is sug- 
gested that this type of legislation not be 
perpetuated. 

These Committee recommendations are 
designed to return as far as is practical to 
the constitutional limitations on exemp- 
tions. 
Specifically these provide: 

a. A statute to remove exemptions 
granted to owners or users of property 
when such user is engaged in a profit mak- 
ing enterprise. (See previous examples.) 

b. Specify that Section 1, Article IX, 
Constitution of Florida is the sole govern- 
ing provision for statutory exemptions of 
property of nonprofit organizations. Con- 
fusion now exists whether this or another 
section governs these exemptions, and both 
are being worked into legal opinion. 

Article IX, Section 1, Florida Constitu- 
tion, has been held by the Supreme Court 
of Florida to be the provision governing 
statutory exemptions of property of non- 
profit corporations. ( Rogers v. City of Lees- 
burg, 157 Fla. 784, 27 So. 2d 70; Miller v. 
Doss, 47 So. 2d 888). By these decisions 
the court reversed its former position that 
Article XVI, Section 16, pertains to non- 
profit corporations as well as to corpora- 
tions for profit. However, the wording of 



Section 16, Article XVI so strongly indi- 
cates the inclusion of non-profit corpora- 
tions that vagueness is working into the 
law by virtue of opinions by the Attorney 
General and by a recent Florida Supreme 
Court opinion which assumed that Section 
16, Article XVI, does pertain to such cor- 
porations. (Simpson v. Jones Business Col- 
lege, 118 So. 2d 779.) 

The need to determine which section is 
the governing provision in a particular sit- 
uation is important. Section 16 of Article 
XVI is a self-executing provision, (Lum- 
mus v. Miami Beach Congregational 
Church, 195 So. 607.) The property must 
not only be used exclusively for the ex- 
empt purpose, but also must be held ex- 
clusively for that purpose, ( Jefferson 
Standard Life Insurance Company v. City 
of Wildwood, 118 Fla. 771, 160 So. 208.) 
On the other hand, Section 1 of Article IX 
is not self-executing but merely authorizes 
legislation for its effectuation, (Rast v. 
Hulvey, 80 So. 750.) It is essential that 
the Legislature plainly designate Section 
1 of Article IX as the governing provision 
for statutory exemptions of property of 
nonprofit corporations. 

c. The extent to which property must 
be used for an exempt purpose in order to 
be entitled to an exemption also needs 
clarification. Every real property tax ex- 
emption provision passed under the au- 
thority of Section 1 of Article IX should 



40 



plainly specify the extent to which prop- 
erty must be used for the exempt purpose 
in order to be entitled to the exemption. 
The intent of this Committe is to tax any 
exempt property or portion thereof used 
to make profit. 

d. The amendment to Section 192.06(3), 
Florida Statutes, to limit the educational 
exemption is recommended because of a 
decision of the Supreme Court of Florida 
which extended the exemption to a busi- 
ness school, (Simpson v. Jones Business 
College, 118 So. 2d 779.) This decision 
opens the gate for real and personal prop- 
erty tax exemptions for privately operated 
business, professional, and vocational 
schools, even though operated for profit. 
The amendment would limit the educa- 
tional exemption to institutions offering 
general educational programs. 

e. The amendment to Subsection 3 of 
Section 192.06, Florida Statutes, will make 
clear the use of the terms benevolent and 
fraternal. Neither a fraternal nor a benevo- 
lent purpose alone will entitle the prop- 
erty to the exemption, ( Simpson v. Bohon, 
31 So. 2d 406.) This is not apparent from 
reading the statute in its present form. 
Section 192.06(11) (a) should be amended 
so that the terms fraternal and benevolent 
are deleted. 

f. Section 192.06(10), Florida Statutes, 
should make it clear that the term com- 
mercial purposes includes, but it not lim- 



ited to, all rentals. This should be done to 
nullify the practical operation of an opin- 
ion of the Attorney General 058-223 that 
a labor organization may rent part of a 
building to another labor organization 
while retaining tax exemption on the en- 
tire building. In the opinion of the Com- 
mittee this construction of the statute is 
not warranted. The Section should be clar- 
ified in order that no possible basis re- 
mains in its terminology to allow a labor 
union to use its property for profit and 
still obtain an exemption on that part so 
used. 
REVENUE EFFECTS 

These amendments are not proposed as 
revenue producing measures. However, 
the removal of the cited exemptions on 
real and personal property will add new 
properties to the property tax rolls in many 
counties. The primary purpose of the 
amendments is to require persons now ex- 
empt from taxation who engage in profit 
making enterprise not contemplated by 
the Florida Constitution to share in the 
cost of providing governmental services. 
However, substantial additional revenue 
will result in some areas. 

Suggested draft of the Exemption Bill. 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation, amending 
Chapter 192, Florida Statutes, by adding a 
section numbered 192.62, to provide for the 
taxation of exempt or immune real and 



4 



6 



8 



9 
10 



41 



personal property which is used, occupied 
or possessed for profit; providing excep- 
tions thereto; amending Chapter 192, Flor- 
ida Statutes, by adding a new section num- 
bered 192.051 expressing the legislative in- 
tent that Section 1, Article IX of the Con- 
stitution of Florida is the governing 
provision for statutory exemptions of prop- 
erty of non-profit corporations ; amending 
Chapter 192, Florida Statutes, by adding 
a new section numbered 192.011 defining 
the extent to which property must be used 
for an exempt purpose in order to be en- 
titled to the exemption; amending Chapter 
192.06(3), Florida Statutes, to provide edu- 
cational exemptions only to institutions 
offering a general educational program; so 
that the use of the terms "benevolent and 
fraternal" are properly considered ; amend- 
ing Section 192.06(11) (a) to delete the 
terms "fraternal and benevolent" ; amend- 
ing Section 192.06(10) Florida Statutes to 
explain the term commercial purposes in- 
cludes, but is not limited to, rentals. 

Be it enacted by the Legislature of the State 
of Florida: 

Section 1. Chapter 192, Florida Statutes, 
is amended by adding a section numbered 
192.62 to read: 

Section 192.62 Taxation of exempt and 
immune property; exceptions. — 

(1) Any real or personal property which 
for any reason is exempt or immune from 
taxation but is being used, occupied, owned, 
controlled or possessed, directly or indirectly 
by a person, firm, corporation, partnership or 
other organization in connection with a profit 
making venture, whether such use, occupation, 
ownership, control or possession is by lease, 
loan, contract of sale, option to purchase or 
in any wise made available to or used by such 
person, firm, corporation, partnership or or- 
ganization, shall be assessed and taxed to the 
same extent and in the same manner as other 
real or personal property. 

(2) This section shall not apply to property 
described in subsection (1) when: 

the property is used exclusively for relig- 
ious, scientific, municipal, educational, liter- 
ary or charitable purposes; 

(3) The classification of such interest as 
property for the purposes of taxation under 



this section shall not be affected by any pro- 
vision of the contract or agreement under 
which the same is used, occupied, owned, con- 
trolled or possessed. 

(4) Such taxes shall not become a lien 
against the property used, occupied, owned, 
controlled or possessed for such purposes but 
shall constitute a debt due and shall be recov- 
erable by legal action or by the issuance of 
tax executions which shall become liens upon 
any property of the taxpayer who owes said 
tax in any county where recorded in the lien 
record. 

Section 2. Chapter 192, Florida Statutes, 
is amended by adding a new section num- 
bered 192.051 to read: 

192.051 Statutory exemptions; governing 
provision. — 

It is hereby declared to be the intent of the 
Legislature of the State of Florida that Sec- 
tion 1 of Artice IX of the Constitution of 
Florida is the exclusive governing provision 
concerning statutory exemptions of property 
of non-profit corporations. 

Section 3. Chapter 192, Florida Statutes, is 
amended by adding a new section numbered 
192.011 to read: 

192.011 Definition of exclusive use. — The 
term "exclusive use" or "exclusively" when- 
ever used in connection with, or describing 
any exemption under this chapter, is inter- 
preted to render inoperative the exemption 
for any use of the property which is not fully, 
completely, and specifically for the exempt 
purpose. Any deviation from this definition 
will not qualify that proportionate part of the 
subject property otherwise used to the exemp- 
tion. 

Section 4. Section 192.06(3), Florida Stat- 
utes, is amended to read: 

192.06(3) Property exempt from taxation. 
- — Such property of educational, literary, char- 
itable and scientific institutions within this 
state, as shall actually be occupied and used 
by them for the purpose for which they have 
been or may be organized, provided not more 
than 75% of floor space of said building or 
property is rented, and the rents, issues, and 
profits of said property are used for educa- 
tional, literary and charitable purposes of said 
institutions. Provided further, that nothing 



42 



in this subsection shall be construed as apply- 
ing to special assessment by municipalities for 
sidewalk curbing, street paving or other local 
improvements. Provided further, that educa- 
tional institutions as used in this chapter shall 
mean state tax supported, parochial, church 
and non-profit private schools, colleges or uni- 
versities conducting regular classes and 
courses of study required for eligibility to, 
certification by, accreditation to or member- 
ship in the Southern Association of Colleges 
and Secondary Schools, State Department of 
Education or the Florida Council of Inde- 
pendent Schools. 

Section 5. Section 192.06(11) (a), Florida 
Statutes, is amended to read: 



192.06(11) (a) 
ation. — 



Property exempt from tax- 



ill) (a) Real property owned and used 
by medical societies chartered under the laws 
of this state, which is used exclusively by 
them for the headquarters for such societies, 
the preservation of medical or scientific li- 
braries, the situs for medical research pro- 
grams and discussions or other educational or 
scientific purposes, identified or allied with 
organized medicine is hereby defined as being 
property within the purview of Section 1, 
Article IX of the State Constitution and en- 
titled to tax exemptions thereunder. Provided, 
however, that this exemption shall only ex- 
tend to the portion of a building used for 
such purposes and where any such property 
owned by any such medical societies is used 



for commercial purposes which includes, but 
is not limited to, rentals, it shall be subject 
to taxation. The portion of such buildings 
used for commercial purposes or other pur- 
poses, may be valued and placed upon the tax 
rolls separately from the portions entitled to 
exemption as aforesaid. 

Section 6. Section 192.06(10), Florida 
Statutes, is amended to read: 

192.06(10) Property exempt from taxa- 
tion. — Real property owned and used by labor 
organizations with charters from national or 
international organizations, which is used ex- 
clusively by them as their meeting halls, 
training halls, or educational purposes is here- 
by defined as being property within the pur- 
view of Section 1, Article IX of the State 
Constitution and entitled to tax exemption 
thereunder; Provided, however, that this ex- 
emption shall only extend to the portion of a 
building used for such purposes and where 
any property owned by any such labor organi- 
zation is used for commercial purposes, which 
purposes include, but which are not limited to, 
rentals, it shall be subject to taxation. The 
portion of such buildings used for commercial 
purposes or other purposes, may be valued 
and placed upon the tax roll separately from 
the portions entitled to exemption as afore- 
said. 

Section 7. All laws or parts of laws in con- 
flict herewith are repealed. 

Section 8. This Act shall become effective 
immediately upon becoming law. 



6 



8 



9. 
10 



43 



4. TANGIBLE PERSONAL PROPERTY 
TAX ON STOCK IN TRADE (Inven- 
tory Tax) 

a. Provide that inventory be returned for 
assessment under oath at its average an- 
nual cost value. Basis of assessments for 
tax purposes to be twenty five percent 
thereof. 

b. Repeal provision in Section 205.59, 
Florida Statutes, which imposes twelve 
mill tax on wholesalers from which retail- 
ers are exempt. 

REASONS FOR RECOMMENDATION 
The inventory tax has long been con- 
sidered one of the most inequitable of all 
property taxes. Inventory is personal prop- 
erty held by a merchant for a short period 
of time for one purpose only, resale. As- 
sessment policy with respect to inventory 
has been the subject of continuing con- 
troversy in Florida for several years. The 
owners of such property contend that it is 
over-assessed relative to other property. 
Arguments are presented that if assessed 
at full cash value ( as is now required ) the 
tax would be confiscatory. 

The Committee concluded after its 
study that the incidence of the tax is 
highly unequal as a consequence of vary- 
ing rates of stock turnover. The fluid char- 
acter of this type of property makes it 
very difficult, if not impossible, to achieve 
equal treatment as compared to relatively 
fixed or long-life assets. Substantial evi- 
dence indicates that many merchants do 
not return their inventory at even a reas- 



onable percentage of its full cash value 
under the present law. 

a. To correct this inequity the Commit- 
tee recommends that the method of arriv- 
ing at inventory value for tax purposes be 
changed to require the cost value as re- 
flected in Schedule C, Federal Income Tax 
Return, be the basis for assessment. The 
cost of commodities in inventory consti- 
tutes the most logical and feasible basis 
of assessment. The market value is subject 
to frequent fluctuations and would be 
more difficult to compute on an average 
basis. Furthermore, the cost basis is clearly 
preferable from the standpoint of the own- 
ers of such property and has been en- 
dorsed by the Florida Wholesalers Asso- 
ciation and Florida Retailers Association. 

The Committee also studied the possible 
alternative or in lieu tax approaches, such 
as gross receipts and value added to sub- 
stitute for the inventory tax. They are, 
however, open to the same type of objec- 
tions. 

The general merit of the cost basis of 
valuing inventories is further attested by 
the fact that this is the typical approach 
in other states. 

In applying the cost method recom- 
mended herein the taxpayer would be re- 
quired to furnish the accounting method 

used to determine the cost value of the 
average annual inventory. The tax assessor 

would then compute the tax bill by assess- 
ing inventory at 25%. 

b. There is no apparent justification for 



4 



6 



45 



8 



10 



.1 



the discriminatory 12 mill occupational li- 
cense tax on inventories which is only paid 
by wholesalers. A similar tax on retailers 
was repealed some years ago. The tax 
committee feels that wholesalers should be 
treated the same as retailers in the interest 
of equity. 
REVENUE EFFECTS 

The inventory tax expressed in dollar 
amounts approximates $32 million per 
year. In some counties it represents only 
a small portion of the total personal prop- 
erty roll, while in others it is a substantial 
part. Under existing reporting methods it 
is impossible to determine the precise ef- 
fect of the recommended policy and its 
equity as related to the treatment of other 
forms of property. However, the Commit- 
tee believes that the increased effective- 
ness of the suggested reporting method 
would not result in any substantial reve- 
nue loss to the counties. Neither would the 
state lose a large amount of revenue from 
the repeal of the 12 mill occupational li- 
cense tax. The enactment of this proposal 
would give the Legislature the opportunity 
to gain necessary knowledge and experi- 
ence so that needed adjustments may be 
made with much greater accuracy. 

A BILL 
TO BE ENTITLED 

AN ACT relating to taxation; amending Sec- 
tion 192.05 to define cost value of stock in 
trade; amending Section 205.59, Florida 
Statutes to remove discriminatory tax on 
wholesalers. 

Be It Enacted by the Legislature of the State 

of Florida. 

Section 1. Section 192.05, Florida Statutes 

is amended to read: 



192.05 Assessment of stock in trade. — (1) 
All personal property considered as goods, 
wares and merchandise commonly known as 
stock in trade, shall be assessed for the pur- 
pose of taxation by the counties, cities, vil- 
lages, towns and taxing districts at a valua- 
tion to be based upon the invoice cost value 
of the goods as reported on Schedule "C", 
Federal Income Tax Return. Said valuation 
to be on the average cost value of such stock 
of goods, wares, merchandise or stock in trade, 
as held and owned over a period of 12 months, 
next preceding the 1st day of January of the 
year for which the assessment is made. 

(2) The County assessor of taxes shall as- 
sess stock in trade at 25 percent of the above 
reported cost value figure. 

Section 2. Section 205.59, Florida Statutes, 
is amended to read: 

205.59 Trading, etc., intangible personal 
property. — Every person engaged in the busi- 
ness of trading, buying, bartering, serving or 
selling, tangible personal property as owner, 
agent, broker or otherwise, shall pay a li- 
cense tax of $10.00 (which shall entitle him 
to maintain one place of business, stationary 
or movable) and shall pay $10.00 for each 
additional place of business, provided that the 
license for each bulk plant or depot of whole- 
sale dealers and of petroleum products, shall 
be $25.00. Vehicles used by any person for 
the sale and delivery of tangible personal 
property at wholesale from his established 
place of business on which a license is paid 
shall not be construed to be separate places of 
business and no license may be levied on such 
vehicles or the operators thereof as salesmen 
or otherwise by the state or county or mu- 
nicipality, any other law to the contrary not- 
withstanding. 

No license shall be required under this sec- 
tion, where the trading, buying, bartering, 
serving, or selling of tangible personal prop- 
erty is necessary incident of some other busi- 
ness classification for which an occupational 
license is required by this or another law of 
this state, and is carried on at the place of 
business, licensed under such other classifi- 
cation, nor shall this section apply to any 
person engaged in the sale of motor vehicles 
or principally in the sale at retail of gasoline 
and other petroleum products. 

Section 3. This act shall become effective 
immediately upon becoming law. 



46 



5. INTANGIBLE TAX 

a. Amend Section 199.11(2), Florida 
Statutes, to reduce the Class B intangible 
personal property tax from 2 mills to 1 
mill. 

b. Provide that all foreign and domestic 
corporations register stockholders with the 
State Comptroller annually. 

c. Increase penalty for failure to return 
intangibles for tax purposes from 10 to 25%. 
REASONS FOR RECOMMENDATIONS 

There are four classes of intangible 
property in Florida. Class A, which con- 
sists of cash, bank deposits and money in 
savings and loan associations, is taxed at 
the annual rate of 1/10 of a mill on the 
dollar of taxable value; Class B, consisting 
of stocks and taxable bonds, is taxed at 
the annual rate of 2 mills on the dollar of 
the taxable value; Class C, consisting of 
Florida real estate mortgages, is taxed at 
the non-recurring rate of 2 mills on the 
dollar of the taxable value. Class D, con- 
sisting of all other intangibles (for ex- 
ample, accounts and bills receivable, out 
of state mortgages, certain annuities) is 
taxed at the annual rate of 1 mill on the 
dollar of taxable value. 

The 1957 Legislature as a revenue meas- 
ure increased the tax on Class B intangibles 
( stocks and bonds ) from 1 mill to the con- 
stitutional limit of 2 mills. The tax on Class 
A intangibles was also increased from 1/20 
of a mill to 1/10 of a mill. The tax on 



Class C and on Class D was left un- 
changed. 

Although the increase in the intangible 
tax rate has been successful in producing 
additional state revenue, many bankers 
and businessmen believe the increase dis- 
courages investment capital. Proponents 
of the move to reduce the tax to 1 mill em- 
phatically point out that the increase in 
1957 came when stock prices were sharply 
increasing and stock dividend yields 
sharply declining. The drop in stock divi- 
dend yields continued down to and in- 
cluding January 1, 1960, when average 
industrial stock yields were 3.10%, com- 
pared to approximately 6% on January 1, 
1952. Using as an example the stock yield 
as of January 1, 1954, we find the following 
comparison noteworthy. 





% of 1960 


% of 1954 




Dividend 


Dividend 




to pay 


to pay 


Company 


1960 Tax 


1954 Tax 


American Tel. and Tel. Co. 


4.83% 


1.73% 


Burroughs Corporation 


6.80% 


1.94% 


du Pont 


7.54% 


2.83% 


Florida Power and Light 


11.45% 


2.42% 


Ford Motor Company 


6.05% 


2.25% 


General Electric 


9.91% 


2.18% 


International Business Machines 29.21% 


6.17% 


Minn. Min. & Man. Co. 


19.55% 


5.80% 


Procter and Gamble 


6.90% 


2.65% 


Safeway Stores 


5.28% 


1.64% 


Sears Roebuck 


6.97% 


4.13% 


Texaco 


6.11% 


1.69% 


U. S. Steel Corporation 


6.57% 


1.31% 


Winn Dixie 


7.12% 


2.53% 


Composite Average ( 14 stocks ) 






( 1960 requirements are 3.43 times 




the 1954 requirements) 







Pursuant to the request of the Interim 
Tax Committee, bankers, trust officers, at- 
torneys and others who appeared before 
the Committee, conducted surveys in the 



6 



47 



8 



10 



six counties that produced 59% of the 
state's intangible tax revenue. This was 
done to determine an approximation of 
the wealth that refuses to come and wealth 
that has left or will leave Florida because 
of the doubled rate. Surveys disclosed the 
following: 

FACTUAL SURVEYS OF "LOST 

WEALTH" CONDUCTED IN 6 

COUNTIES 

Date and Place . Name af Number Estimated 

of Tax Hearing County Surveyed Individuals Worth 

Aug. 4th in Orange 107 $298,000,000 

Orlando Sarasota 136 $171,205,000 

Aug. 12th in Palm Beach 78 $161,000,000 

Miami Broward 1265 $370,000,000 

Dade 43 $ 46,200,000 

Aug. 18th in No figures submitted 
Pensacola Local Trust Officers 

urged reduction in Tax 
Sept. 2nd in Pinellas 405 $333,500,000 

Jacksonville 

Oct. 28th in Dade 126 $181,260,000 

Sarasota ( Additional figures ) 

(Feb. 1961) Delray Beach 103 $143,200,000 
(No Hearing) (24 attorneys survey) 

(Palm Beach County) 

Extending the figures reported from 
Orange, Palm Beach, Broward, Pinellas 
and Sarasota Counties to the state as a 
whole on the basis of tax paid in each of 
these counties, it appears that during the 
past three years, in excess of three billion 
of new and/or old wealth has been lost to 
the State of Florida due to the doubled 
rates. The tax on this lost wealth at the 
former 1 mill rate is $3 million per annum. 

Other general considerations and rea- 
sons for the Legislative Tax Committee's 
recommendation are: 

1. Florida's tax conflict: The $5000 Fla. 
homestead exemption attracts low income 



groups to Florida, while the 2 mill in- 
tangible tax tends to deter wealthy indi- 
viduals from becoming Florida citizens. 
This factor makes more attractive com- 
petitive retirement states such as Arizona, 
California and the nearby Caribbean areas. 

2. Florida's unfavorable tax image: As 
a result of the publicity received during 
the past four years on this tax increase, 
Florida has created something of an un- 
favorable tax image throughout the United 
States. 

3. Effect on Employment: Florida un- 
employment figures have recently been re- 
ported at the highest levels since 1949, 
with many areas reporting declining resi- 
dential construction. If newcomers are ac- 
quired or attracted by the tax reduction 
the construction industry could be greatly 
benefitted. 

4. Effect on New Industry: It was reported 
to the Committee that Minnesota Manu- 
facturing and Mining Company would not 
locate a factory in Florida because most 
of their managerial employees are stock- 
holders and that those employees could 
not afford to become citizens of Florida. 
Although this may not have been the com- 
pelling reason for the decision, it may well 
have been an important factor. 

5. Tax Reductions in Other States: Com- 
petition for wealth is exceedingly keen. In 
1960 the Legislature of Mississippi voted 
to reduce its top income tax rate by 50% 



48 



over a 6-year period for the purpose of 
attracting new industry. In 1959 Kansas 
changed its 5 mill tax to an optional 3% 
of investment income tax. In the past sev- 
eral years the State of Connecticut has 
eliminated its intangible tax entirely in 
order to attract residents from the New 
York area. 

6. University Recommendations: The Flor- 
ida State University tax authorities en- 
gaged by the Committee to report on prop- 
erty taxes recommended that the 1 mill 
rate be restored. 
REVENUE EFFECTS 

On September 23, 1960, Dr. Arthur 
Cunkle of the Legislative Reference Bu- 
reau, appeared before the Property Tax 
Subcommittee, and estimated the annual 
loss from reinstating the former 1 mill rate 
at $8 million. Testimony of bankers and 
other qualified persons at the public tax 
hearings predict that if the former 1 mill 
rate is restored at least one billion in addi- 
tional wealth can be expected to come in 
in the first year producing an annual $1 
million of revenue per annum. Although it 
is impossible to determine the precise ef- 
fect of the intangible tax reduction, the 
Committee feels that there is ample evi- 
dence to support the recommendation for 
reduction to the former 1 mill rate. 

It is the consensus of opinion that the 
annual registration of all foreign and do- 
mestic corporations with the Comptroller 



together with the increased penalty will 
result in better enforcement of a difficult 
tax. The Committee learned from states 
having similar enforcement experience that 
substantial increases in revenue collections 
result. 

Suggested draft of Intangible Tax Bill: 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation; amending Sec- 
tion 199.11(2) Florida Statutes, decreasing 
the intangible tax on Class B Intangible 
Personal Property; amending Chapter 199, 
Florida Statutes, by adding a new section 
numbered 199.071 requiring reporting of 
names and addresses of stock holders ; 
amending Section 199.30, Florida Statutes, 
increasing penalty for failure to make a 
return. 

Be It Enacted by the Legislature of the State 
of Florida. 

Section 1. Section 199.11(2), Florida Stat- 
utes, is amended to read : 

199.11 Annual levy. — On or after January 
1, 1942 there is hereby annually levied and 
assessed on all tangible property, to be as- 
sessed and collected as other taxes are as- 
sessed and collected and to be paid into the 
intangible tax fund of the state, and a por- 
tion therefrom as hereafter set forth the fol- 
lowing property tax: (2) 

On all class B intangible personal property, 
1 mill on the dollar of the taxable value of 
such class B intangible personal property. 

Section 2. Section 199.30, Florida Statutes, 
is amended to read: 

199.30 Failure to file return and pay the 
tax when due. — Any person who fails to make 
a tax return as required by this chapter shall 
pay a penalty in addition to and as part of 
the tax, a sum equal to 25 percent of the 
tax found to be due. A taxpayer making a 
return and who fails to include therein all of 
tangible personal property subject to taxa- 
tion as required by this chapter shall pay as 



7 



49 



8 



9 
10 



a penalty in addition to, and as part of the 
tax, a sum equal to 25 percent of the tax 
found to be due on that part of his intangible 
personal property which he fails to include in 
his return. All taxes together with any pen- 
alties shall draw interest at the rate of 1 
percent per month from the date the said 
taxes become delinquent until same has been 
paid. In making a back assessment of omit- 
ted property there shall be added as a penalty 
the sum of 25 percent of the tax per annum 
from the date such tax should have been paid. 

Section 3. Chapter 199, Florida Statutes, 
is amended by adding a new section numbered 
199.071 to read: 



199.071 Corporation Report. — Every Flor- 
ida or foreign corporation, the bonds and 
stocks of which are subject to tax under this 
act, shall, on or before the 1st day of March 
of each year, make a true and correct verified 
report to the State Comptroller giving in 
such form as the said Comptroller may re- 
quire the names and addresses of persons in 
Florida who hold its registered bonds and 
stock on January 1, next preceding. 

Section 4. This act shall become effective 
on January 1, 1962. 



50 



6. NOTICE OF ASSESSMENT 
CHANGES 

a. Require county tax assessors to file 
with the clerk of the circuit court a list of 
all properties the assessments of which 
have been lowered from the assessments 
of the immediately preceding year. 

b. Amend Section 193.25, Florida Stat- 
utes, to provide that tax assessor give writ- 
ten notice of increased assessments. 
REASONS FOR RECOMMENDATION 

a. A new statute should be enacted re- 
quiring the county tax assessor to prepare 
annually a list of all properties the assess- 
ments of which have been lowered from 
the assessments of the immediately pre- 
ceding year. This list should contain de- 
scription of the property, the name of the 
owner or owners, the amount of the assess- 
ment for the preceding year, the amount 
of the assessment for the current year, the 
amount of the decrease. This list should be 
submitted to the county board of tax 
equalization. The majority of the board of 
tax equalization should be authorized to 
make such changes in the lowered assess- 
ments as they may consider equitable. 
After appropriate notation of such changes 
are made on the list a copy should be filed 
with the clerk of the circuit court and be 
open to inspection by the general public. 1 



1 This recommendation is limited to real 
property. 



This is a step toward better reporting 
procedures which would tend to deter the 
gradual reduction of assessments by coun- 
ties, which have expended large sums of 
money in re-assessing the county. 

b. Section 193.25, Florida Statutes, 
should be amended to require the tax as- 
sessor to give written notice of increased 
assessment. The purpose of this amend- 
ment is to give the taxpayer the oppor- 
tunity to inquire into changes in his assess- 
ment and also have the information in 
ample time to appear before the board 
of county commissioners when they sit as 
a board of equalization. 

No notice is now given to the taxpayer 
informing him of an increased assessment 
over prior years or a change in his assess- 
ment from that of his return. Notice of the 
county commissioners' meeting to hear 
complaints is published by newspapers 
with the result being that the taxpayer us- 
ually finds out about an increased assess- 
ment after it is too late to be heard by the 
board of equalization. 

This proposed change would give the 
taxpayer written notice so that he could 
protect himself at the administrative level. 

Pursuant to the request of the Florida 
Tax Assessors Association, this recommen- 
dation also contains the provision for 
changing the time for the completion of 
the assessment roll from the first Monday 
in July to the first Monday in August in 



6 



8 



10 



51 



every year. Although a procedural change, 

it is included in this discussion of Section 

193.25, which is its appropriate place. 

Suggested draft of Bill: 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation; amending Sec- 
tion 193.25, Florida Statutes, changing the 
time for the completion of the assessment 
roll ; providing written notice of increased 
assessments to property owners ; providing 
for the preparation of lists at all proper- 
ties the assessments of which have been 
lowered from the preceding year. 

Be It Enacted by the Legislature of the State 
of Florida. 

Section 1. Section 193.25, Florida Statutes, 
is amended to read: 

193.25 When assessment roll to be com- 
pleted ; equalizing the assessments ; meeting 
to hear complaint, etc., notice of meeting and 
increased assessments. — The county tax as- 
sessor of taxes shall complete the assessment 
rolls of their respective counties on or be- 
fore the first Monday in August in every 
year, on which date such assessors shall meet 
with the Board of County Commissioners at 
the clerks office in their respective counties 
for the purpose of hearing complaints and 
receiving testimony as to the value of any 
property, real or personal as fixed by the 
county assessor of taxes, of perfecting, re- 
viewing and equalizing the assessment and 
may continue in session for that purpose from 
day to day for one week or as long as shall 
be necessary. Due notice of such meeting 
shall be given by publication in a newspaper 
published in such county or by posting a no- 
tice at the court house door if there be no 
newspaper published in the county at least 
fifteen days before the board will be in ses- 
sion for the purpose of hearing complaints 
and receiving testimony as to the value of 
any property as fixed and assessed by the 
county assessor of taxes. Except that when 
the assessed valuation of all property, real 
or personal is determined, the county assessor 
of taxes shall give notice in writing by mail 
to the owner or agent of such property at his 
last address as shown upon the records of 



the tax assessor when the assessed valuation 
exceeds the assessed valuation of the prior 
year or the assessed valuation exceeds that 
of the return and in either event such ex- 
cess is not due to improvement of the prop- 
erty or county wide reappraisal of all prop- 
erty and also the county assessor of taxes 
shall give to the same owner or agent of 
property notice in writing by mail designat- 
ing the time and place of the meeting of the 
Board of County Commissioners fifteen days 
before the board meets to hear complaints; 
provided that the County Commissioners of 
any county, may, if they deem it necessary 
extend the time for the completion of such 
assessment roll for the purpose of revising 
and equalizing the assessment. A similar ex- 
tension not exceeding thirty days giving due 
notice and an opportunity to be heard as to 
assessment in values as hereinbefore pro- 
vided. Provided however, that any defense 
which may accrue to the taxpayer because of 
failure to receive such notice shall expire 
when the taxes assessed thereon become delin- 
quent or would become delinquent if not paid. 
Should the board increase the value fixed by 
the county assessor of taxes of any real estate 
or personal property due notice thereof shall 
be given to the owner or agent of such prop- 
erty by publication in a newspaper published 
in such county or by posting a notice at the 
court house door if there be no newspaper 
published in the county at least fifteen days 
before the board will be in session to hear any 
reason that such persons may desire to give 
why the valuation fixed by the board shall be 
changed. The Board of County Commission- 
ers shall meet on the first Monday in August 
or September of each year for the purpose of 
hearing complaints from the owners or agents 
of any real estate or personal property, the 
value of which shall have been fixed by the 
assessor or changed by them, for that purpose 
the board shall sit as long as it may be nec- 
essary. The county assessor of taxes and the 
Board of County Commissioners of each and 
every county in this state shall comply with 
the requirements of this section. 

Section 2. Whenever the assessments of 
any real property have been lowered from the 
assessments of the immediately preceding 
year a list shall be prepared by the county 
assessor of taxes containing the description 
of all such property, the name of the owner 



52 



or owners, the amount of the assessment for 
the preceding year, the amount of the decrease 
and the reason therefore. This list shall be 
submitted to the County Board of Tax Equali- 
zation by the first Monday in August in each 
year. The majority of the Board of Equaliza- 
tion shall order such changes as are consid- 
ered equitable. A copy of this list shall be 



filed with the clerk of the circuit court and is 
open to public inspection. 

Section 3. All laws or parts thereof in 
conflict herewith are repealed. 

Section 4. This act shall take effect on 
January 1, 1962. 



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9 



10 



53 






Mm 



7. MOTOR BOATS 

Repeal Section 200.44, Florida Statutes, 
exempting from taxation, yachts and boats 
of non-resident owners. 
REASONS FOR RECOMMENDATION: 

This recommendation is to aid local gov- 
ernments by providing for the collection of 
tangible personal property tax on yachts 
and boats of non-residents which remain 
in Florida for a sufficient period of time to 
acquire a tax situs. 

Non resident vessels have a tax situs in 
one of two jurisdictions; but not in more 
than one. (Frick v. Pennsylvania, 268 U. S. 
473.) 

The Committee believes that if the boats 
are located in Florida for the entire year, 



the domiciliary state of the owner has no 
right to tax them. 

The change will further express the Leg- 
islative intent that the personal property 
tax on pleasure boats and yachts be en- 
forced in all counties. 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation; repealing Sec- 
tion 200.44, Florida Statutes, relative to 
exemption of non-resident boats from tax- 
ation. 

Be It Enacted by the Legislature of the State 
of Florida. 

Section 1. Section 200.44, Florida Statutes, 
is hereby repealed. 

Section 2. All laws or parts of laws in con- 
flict herewith are repealed. 

Section 3. This act shall become effective 
immediately upon becoming law. 



8 



9 



55 



10 



8. GENERAL PROCEDURAL 
CHANGES (Property) 
Amendments which eliminate inconsist- 
encies, clarify conflicting sections and con- 
form to rulings of Florida Supreme Court. 

A. Repeal Section 192.57(1) which re- 
quires no oath to a tax return. 

Sections 193.09; 193.27; 193.13; 199.07; 
and 200.08(1) contemplate an oath to a 
tax return. Section 192.57(1) provides 
that no oath is required. This inconsist- 
ency should be eliminated to retain the 
requirements of such an oath. 

B. Amend Section 199.07, Florida Stat- 
utes, to make it clear that even though in- 
tangible personal property tax returns are 
not open to inspection by the general pub- 
lic, the intangible personal property tax 
roll is open to such inspection. 

C. Amend Section 196.12, Florida Stat- 
utes so as to clearly apply to the certifi- 
cates held by a county or municipality as 
well as a private holder. This result is 
reached in a well reasoned opinion by the 
Attorney General, but he found it neces- 
sary to utilize Section 95.021, Florida Stat- 
utes, in order to reach his decision. Opin- 
ion of the Attorney General No. 058-348. 

D. Amend Section 195.01(1), 2nd para- 
graph. Insert after other personal prop- 
erty, the words "both tangible and intan- 
gible." The basis of this suggestion is 
(Simpson vs. Lofton, 33 So. 2d 230.) 

E. Amend Section 193.221(1), Florida 



Statutes by striking out the unconstitu- 
tional provision allowing separate assess- 
ment of mineral rights. This Section was 
declared unconstitutional in March, 1960 
by the Florida Supreme Court. (Cassidy 
vs. Consolidated Naval Stores Company, 
119 So. 2d 35) In subsection 1 the fol- 
lowing language should be striken: "Pro- 
vided that such separate assessment shall 
be declared only when the owner of some 
record interest in said land shall file with 
the tax assessor of the county, prior to 
April 1 of the year, a written request for 
such separate assessment of such mineral, 
oil or other sub-surface rights." 

F. Amend Section 200.021(1) by striking 
out everything after the word resale, and 
inserting the words "if the assessor has a 
reasonable basis for believing that prop- 
erty will be kept in this state for a con- 
tinuous period exceeding 6 months." This 
change appears to be necessary in order 
that such property be considered as hav- 
ing a tax situs in this state. The present 
wording invites litigation. 

G. Amend Section 192.201, Florida Stat- 
utes, by stating that the exemption pro- 
vided in this section does not affect the 
exemption granted by Section 11 of Ar- 
ticle IX of the Constitution. At present, 
in many of our counties, the maximum tax 
exemption granted on household goods 
and personal effects is $1,000.00. No de- 
viation from this policy is made even with 



8 



9 



57 



10 



reference to head of a family. Such a 
procedure is clearly in error. 

This statute cannot alter in any way, the 
right to an exemption under the constitu- 
tion. (Sparkman vs. State, 58 So. 2d 431.) 
Thus the head of a family residing in this 
state is entitled to a maximum of $500.00 
exemption under the Constitution. Since 
the statute is presumed to be constitu- 
tional, he is entitled to an additional $1,- 
000.00. To hold otherwise removes the 
preferred status of the head of a family 
which was granted by the Constitution. 
A status which the Committee does not 
believe can be altered by statute. 
H. Amend Section 199.22, Florida Stat- 
utes, to clarify the exact date on which 
the lien attaches. November 1 of the tax 
year is the proper date. 
I. Amend Section 199.11, Florida Stat- 
utes, to make it clear that all taxes im- 
posed under its authority are property 
taxes. This clarification is particularly im- 
portant with reference to Class C intan- 
gible tax. The Florida Supreme Court 
has held that Class C tax is a property 
tax. Despite this, many lawyers feel that 
subsequent expressions of the court lend 
strength to the conclusion that the tax is 
an excise. The manner of imposing the 
tax will always cause confusion concerning 
its proper classification unless the Legis- 
lature specifically states that intangible tax 
is a property tax. (This amendment is in- 



corporated in Recommendation No. 5.) 
J. Amend Section 372.12, Florida Statutes, 
so that the last sentence is deleted. Sec- 
tion 372.19 should be repealed. These 
changes are made necessary by a decision 
of the Florida Supreme Court. (State ex 
rel vs. Webb, 49 So. 2d 93) Later stat- 
utes have superseded these statutes. 
K. Amend Section 250.50, Florida Statutes, 
so as to delete poll and street tax. We 
have no poll tax in Florida; the inclusion 
of street tax only invites misinterpretation. 
Suggested draft of Bill: 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation, repealing Sec- 
tion 192.57(1) which requires no oath to 
a tax return; amending Section 199.07, 
Florida Statutes to provide that intangible 
personal property tax roll is open to in- 
spection by the general public; amend- 
ing Section 196.12, Florida Statutes, so that 
Section applys to certificates held by coun- 
ties or municipalities as well as private 
holders; amend Section 195.01(1) Florida 
Statutes by inserting after the words "other 
personal property" the words "both tangible 
and intangible"; amend Section 193.221(1), 
Florida Statutes, by striking out unconsti- 
tutional provision requiring separate assess- 
ment of mineral rights ; amend Section 200.- 
021(1), Florida Statutes by adding "if the 
assessor has a reasonable basis for believ- 
ing the property will be kept in this state 
for a continuous period exceeding six (6) 
months" ; amend Section 192.201, Florida 
Statutes, to provide that the exemption 
specified in this Section does not affect the 
exemption granted by Section 11, Article 
IX of the Florida Constitution; amend 
Section 199.22, Florida Statutes, to specify 
November 1st as the exact date on which 
lien attaches; amend Section 372.12, Flor- 
ida Statutes, to delete the last sentence; re- 
peal Section 372.19, Florida Statutes; amend 



58 



Section 250.50, Florida Statutes, to delete 
the terms poll and street tax. 

Be It Enacted by the Legislature of the State 
of Florida: 

Section 1. Section 192.57(1), Florida Stat- 
utes is hereby repealed. 

Section 2. Section 199.07, Florida Statutes, 
is amended to read: 

199.07 Returns of intangible personal prop- 
erty for taxation. — It is hereby made the duty 
of every person, firm or corporation in this 
state owning or having control, management, 
or custody of intangible personal property 
which is subject to taxation under the laws 
of Florida, including trustees, executors, ad- 
ministrators, receivers and all other fiduciar- 
ies, to file a sworn return of the same with 
the county assessor of taxes in the proper 
county on or before the first day of April of 
each and every year, giving the character, 
description, location and full cash value of 
same according to the best of the knowledge 
and belief of the person making the return. 
It is provided that intangible personal prop- 
erty of a taxable class owned by or under 
the control, management or custody of every 
person who becomes a legal resident of this 
state subsequent to January 1st and prior to 
the following April 1st of any year shall be 
subject to taxation on the date upon which 
such person becomes a legal resident of this 
state and such person shall file a return and 
be liable for intangible personal property tax- 
es for said year; provided, however, that the 
tax assessor in his discretion may grant such 
taxpayer a reasonable extension of time in 
which to file a return ; and provided, further, 
that credit shall be allowed against such tax- 
es for any amount of intangible or income 
taxes such taxpayer is required to pay to an- 
other state for all or any part of said year 
on said intangible personal property or the in- 
come therefrom. Intangible personal property 
tax returns shall not be open to inspection 
except by the officers of the state and county 
whose duties require their examination there- 
of or under an order of a court of competent 
jurisdiction requiring the same as relevant 
evidence, provided however, although intangi- 
ble personal property tax returns are not open 
to inspection to the general public, the intan- 
gible personal property tax roll is open to 
such inspection. No officer examining such 



returns shall divulge their contents, other 
than the total value and tax thereon, or make 
or permit to be made any copy or list there- 
from. When any intangible personal property 
tax or assessment shall have been paid, it 
shall be the duty of the tax assessor to return 
and deliver to the taxpayer at his request, the 
original intangible personal property tax re- 
turn or returns of the taxpayer upon or in 
connection with which such intangible per- 
sonal property taxes shall have been assessed 
and levied. If a taxpayer shall not request 
the surrender of his intangible personal prop- 
erty tax return after having paid his intan- 
gible personal property tax, it shall be the 
duty of the tax assessor to destroy all intan- 
gible personal property tax returns filed with 
him within three years after the same shall 
have been paid. 

Section 3. Section 196.12, Florida Statutes, 
is amended to read: 

Section 196.12 Limitation upon lien of tax 
certificates. — A period of twenty years is de- 
clared to be the life of any tax certificate 
issued against any lands in the state, whether 
issued for state and county taxes or issued by 
municipality for municipal taxes, and held by 
any private holder, natural or corporate, part- 
nership, trustee, estate of the deceased per- 
son, county or municipality or other person 
or persons under disability or otherwise. Such 
period of twenty years to be reckoned from 
the date of the issuance of such tax certifi- 
cate; and when such certificate becomes twen- 
ty years old, reckoned from the date of its 
issuance, the same shall be deemed and held 
to be barred by this statute of limitation, and 
no action on such certificate shall be mani- 
tained by any such private holder in any 
court of this state, and no tax deed shall is- 
sue thereof. This section shall not be con- 
strued so as to make it unlawful for the state 
or any municipality to sell, to third persons 
or private purchasers, tax certificates which 
become twenty years old after the effective 
date of chapter 19515, acts 1939, but as to 
all such tax certificates which are so sold and 
which become twenty years old after said act 
became a law, and as to all tax certificates, 
now held by the state or any municipality, 
which are already twenty years old, and which 
may be sold, the purchaser or purchasers shall 
be limited to five years from the date of pur- 
chase of such certificate or certificates in 



59 



_9 

10 



which to apply for a tax deed or institute 
other action for recovery on or enforcement 
of such certificate or certificates. 

The provisions and the limitations herein 
prescribed for tax certificates shall not apply 
to tax certificates which were sold under the 
provisions of chapter 18296, acts 1937, com- 
monly known as the Murphy act. 

Section 4. Section 195.01, (1), Florida 
Statutes is amended to read: 

Section 195.01 Same; annual return and 
assessment of railroad and properties; value 
study. — 

(1) ANNUAL RETURN BY RAILROAD 
COMPANIES.— The president and secretary, 
or superintendent or manager of the railroad 
company or street railroad company or sleep- 
ing or parlor car company, or the tax com- 
missioner or the receiver thereof, whose car, 
track or roadbed, or any part thereof is in 
this state, shall annually, on or before the 
first Monday in April, return to the railroad 
assessment board of the state, under their 
oath, the total length of such railroad, the 
total length and value of such main track, 
branch, switch and spur track, and side tracks, 
lots or parts of lots not leased or rented and 
terminal facilities, in this state, and the total 
length and value thereof in each county, city 
or incorporated town in this state as of the 
first day of January. 

They shall also make return of the number 
and value of all locomotives, engines, passen- 
ger, sleeping, freight, parlor, platform, con- 
struction and other cars and appurtenances 
(including shop equipment and tools), stock 
in warehouse and other personal property both 
tangible and intangible, used or to be used 
in connection with the construction, opera- 
tion or maintenance of the property of the 
company. 

Section 5. Section 193.221(1), Florida 
Statutes, is amended to read as follows: 

193.221(1) Assessment of mineral; oil; 
and other subsurface rights. — (1) Whenever 
the mineral, oil or other subsurface rights in 
real property not to include a lease hold inter- 
est in said subsurface rights, shall have been 
sold or otherwise transferred by the owners 
of the fee or acquired by reservation, such 
rights shall be taken and treated as real prop- 



erty and shall be subject to taxation separate 
from the fee. Provided however, that such 
subsurface rights shall be assessed as sep- 
arate property and separate from the fee and 
it shall be the duty of the owner of such sub- 
surface rights to make separate return there- 
of for taxation by the 1st day of April. If 
a return is not made by the owner of the sub- 
surface rights, the duty is hereby imposed by 
the tax assessor to assess said separate sub- 
surface rights for taxation and place it upon 
the tax rolls. Upon such subsurface rights 
being placed on the assessment roll, notice 
thereof shall be given to owner thereof at his 
last known address irrespective of whether a 
return was made by such owner or not. 

Section 6. Section 200.021(1), Florida 
Statutes, is amended to read: 

Section 200.021(1) Property located in 
state between January 1st and March 31st, 
taxable. — (1) All taxable, tangible personal 
property as defined by Section 200.01 located 
in the state between January 1st and March 
1st of each year, (both dates inclusive) shall 
be taxable for said year in the county and by 
the tax assessor of the county in which the 
same is located, provided that tangible per- 
sonal property brought into the state after 
January 1st and before April 1st of any year 
shall be taxable for that year only if such 
property is brought into the state for resale, 
if the assessor has a reasonable basis for be- 
lieving that the property will be kept in the 
state for a continuous period exceeding six 
months. 

Section 7. Section 192.01, Florida Statutes, 
is amended to read: 

Section 192.201 Exemption of household 
goods and personal effects. — (1) There shall 
be exempt from taxation to every person re- 
siding and making his or her permanent home 
in this state, household goods and personal 
effects to the assessed value of $1,000.00. Ti- 
tle to such household goods and personal ef- 
fects may be held individually by the entiri- 
ties, jointly, or in common with others. The 
exemption provided in this section does not 
affect the exemption granted by Section 11, 
Article IX of the Constitution of Florida con- 
cerning household goods and personal effects 
to the value of $500.00 owned by the head of 
a family residing in this state. 



60 



Section 8. Section 199.22, Florida Statutes, 
is amended to read: 

Section 199.22 Time and circumstances 
under which intangible personal property tax- 
es are a lien. — All intangible personal prop- 
erty taxes shall be a lien on all the real and 
personal property of the taxpayer in the coun- 
ty in which they are assessed from the time 
they become due, on November 1st of the tax 
year. All such tangible personal property tax- 
es shall be a lien upon any and all real estate 
of the taxpayer in every other county from 
the time that the tax execution is reported in 
such other county where the real estate is sit- 
uated. Where no tax execution is or has been 
issued or recorded on a delinquent intangible 
personal property tax, said intangible per- 
sonal property tax shall cease to be a lien on 
the real and personal property of the tax- 
payer, wherever situated, seven days from the 
date said intangible personal property be- 
comes or became due and any interested party 
may thereafter request that the tax collector 
cancel same of record and it shall be the duty 
of the tax collector to so do. The lien of in- 
tangible personal property taxes and tax ex- 
ecution shall be superior to all other liens for 
other taxes, state, county and municipal and 
prior recorded liens on real estate. 



Section 10. Section 372.12, 
utes, is amended to read: 



Florida Stat- 



372.12 Acquisition of state game lands. — 
The Game and Fresh Water Fish Commission, 
with the approval of the Governor, may ac- 
quire in the name of the state, lands and 
waters suitable for the protection and prop- 
agation of game, fish, non-game birds, or fur- 
bearing animals, or for hunting purposes, 
game farms, by purchase, lease, gift or oth- 
erwise to be known as state game lands. The 



said Commission may erect such buildings 
and fences as may be deemed necessary to 
properly maintain and protect such lands or 
for the propagation of game, nongame birds, 
fresh water fish or fur-bearing animals. The 
title of land acquired by purchase, lease, gift 
or otherwise, shall be approved by the Attor- 
ney General. The deed to such land shall be 
deposited as are deeds to other state lands. 
No such lands shall be purchased at a price 
to exceed ten dollars per acre. 

Section 10. Section 372.19, Florida Stat- 
utes, is hereby repealed. 

Section 11. Section 250.50, Florida Stat- 
utes, amended to read as follows: 

Section 250.50 Tax exemption; certifi- 
cate of membership. — Every officer and en- 
listed man of the Florida National Guard shall 
be exempt from road duty and jury duty while 
on active duty. Any local or special laws to 
the contrary notwithstanding. The Command- 
ing Officer of each company, troop, battery or 
other similar organization shall furnish each 
member of his command applying for the 
same, such certificate of active duty as may 
be prescribed by the adjutant general, signed 
by such Commanding Officer, which certificate 
shall be accepted by any court as proof of 
exemption as provided by this Section. The 
certificate shall be good only for the calendar 
month within which it bears date. The Com- 
manding Officer of a division, brigade, regi- 
ment, group, squadron or separate battalion 
shall issue a similar certificate to each of his 
staff officers and enlisted staff. 

Section 12. All laws or conflicts or parts 
thereof which conflict herewith, are hereby 
repealed. 

Section 13. This Section shall become ef- 
fective immediately upon becoming law. 



.9 

10 



61 



9. SALES, USE AND EXCISE TAX 

Changes to provide better administra- 
tion and collection. 

a. Amend Section 212.08(8) (a), Flor- 
ida Statutes, to exclude from operation of 
Section, meals served at institutions of 
higher learning; to extend the sales tax to 
dormitory rentals at institutions of higher 
learning; to better define religious, edu- 
cational and charitable institutions enti- 
tled to an exemption. 

b. Amend Section 212.04(1) (2) and 
212.02(16), Florida Statutes, to remove 
restrictions on admissions now limited by 
Federal Excise Tax. 

c. Repeal Section 212.03(4) (6), Flor- 
ida Statutes, to remove the sales tax ex- 
emptions on lodging and rentals in excess 
of 180 days. 

d. Enact new section setting forth Legis- 
lative intent that sales tax exemptions not 
apply to purchases made to state and 
federal banks. 

REASONS FOR RECOMMENDATION 
a. At institutions of higher learning 
throughout the state, effective administra- 
tion of the exempt privilege from the sales 
tax cannot be had. Students and others 
who serve food at cafeterias, snack bars, 
etc., cannot successfully determine, under 
the fast serving and check-out method, who 
is exempt and who should pay the tax. 

Consequently many persons not enti- 
tled to the exemption escape the tax. 



These include part time students, college 
employees, families of faculty members 
and students, as well as the public gener- 
ally. By regulation, faculty members have 
been declared tax exempt on meals. Food 
is not furnished them free as part of a 
salary compensation and they are the only 
group of state employees enjoying freedom 
from tax on such purchases. 

The abuses of the present privileges are 
not intended on the part of the business 
staff at these institutions. The manner in 
which serving is done simply does not 
permit careful screening of those properly 
exempt and the collection of tax from the 
others. 

There are other aspects of this problem 
of course. Evasion and avoidance of tax 
reduces the amount of general revenue 
from which state financed colleges and 
universities are maintained. Further, and 
of considerable importance, privately 
owned and privately operated places serv- 
ing food and other taxable items are placed 
at a competitive disadvantage by any tax 
exempt selling by colleges. 

Also there is a growing tendency among 
colleges and universities to abandon direct 
operation of food service in favor of con- 
tracts with private profit making opera- 
tors, and automatic vending machines. 
There is some question of the basic fair- 
ness of this protection from taxation of 
private enterprise under the guise of gov- 



63 



9 

10 



ernmental or non-profit educational opera- 
tions. 

There also appears to be little justifi- 
cation for continuing the tax exemption 
on room rentals made to students, at such 
institutions. Many of the same comments 
above apply to this difficult to administer 
and inequitable situation. 

Because of the problems encountered in 
determining which religious, educational 
and charitable institutions are entitled to 
exemptions under the Sales Tax Law, it is 
deemed essential to better define these in- 
stitutions to preclude profit making enter- 
prises, connected with religious, education- 
al and charitable institutions from claiming 
sales tax exemptions. 
REVENUE EFFECTS: 

Although not designed as or considered 
a revenue measure, the extension of the 
Sales Tax to food and lodging would have 
the incidental effect of providing approxi- 
mately $1 million per year. 

b. Amend Section 212.04(1) (2), and 
212.06(16). Florida Statutes, to remove 
restrictions on admissions now limited by 
Federal Excise Tax. Under the provisions 
of existing law, sales tax applies on admis- 
sions to places of amusement such as the- 
aters, carnivals, fairs and the like, and to 
individual rides and amusement contracts 
at carnivals. The pertinent part of 212.04 
(1) now reads, "At the rate of 3 percent 
of sales price or the actual value received 



for such admission. . ." Section 212.12(10) 
provides that the tax imposed shall be in 
addition to the total price of such admis- 
sions, etc., sold at any one time by or to 
a customer or buyer. 

This amendment puts into the law a re- 
quirement established by regulation sev- 
eral years ago to prevent partial tax avoid- 
ance and make easy, accurate audits of tax 
due. Under Section 212.04(2), the federal 
tax now applies only to admissions of more 
than $1.05, and provides no yardstick for 
exemption under our present law. This 
situation offers an area of tax avoidance 
and administrative problems that should 
be corrected. 
REVENUE EFFECTS 

The above changes would result in ap- 
proximately $360,000 additional revenue 
per annum. 

c. Repeal Section 212.03(4) (6), Flor- 
ida Statutes, to remove sales tax exemp- 
tions on lodging and rentals in excess of 
180 days. This recommendation would sim- 
ply extend the 3 percent sales tax on rent- 
als indefinitely and would have the effect 
of providing much better administration 
and enforcement. As a subterfuge, land- 
lords frequently draw up a years lease and 
collect all of the rent during the first few 
months of occupancy and only report tax 
on half of the amount so collected. In al- 
most every instance where the entire rent- 
al is collected during the first few months 



64 



a seasonal lease is involved. This change 
would correct this inequitable situation 
and simplify the collection of this tax. 

REVENUE EFFECT 

The repeal of the limitation would pro- 
duce approximately $3,000,000 in addi- 
tional revenue per annum. 

d. Enact new section setting forth Leg- 
islative intent that Sales Tax exemptions 
not apply to purchases made by state and 
federal banks. Under the existing Comp- 
troller's Ruling, No. 65, sales to national 
and state banks of items to be directly 
and exclusively used in the conduct of 
their banking and trust business are ex- 
empt. The exemption does not apply to 
federal and state saving and loan associa- 
tions. The theory of the exemption is 
based on decisions which classify national 
banks as instrumentalities of the United 
States. Since banks are operated for profit 
and the trend of the law indicates that 
there may be justification for extension 
of the tax to banks, the Committee has 
reconsidered this exemption and recom- 
mended that the tax be extended to banks. 
The existing limitation, which provides 
that in the event this tax is declared un- 
constitutional, state banks would be enti- 
tled to the same treatment would still 
apply. Interviews with bankers seem to 
indicate they recognize the equity and 
fairness of such an extension. 



REVENUE EFFECT 

Taxing purchases made by banks would 
produce approximately $200,000 per an- 
num. 

Suggested draft of Bill. 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation; amending Sec- 
tion 212.08(8) (a), Florida Statutes, to ex- 
clude from operation of section, meals serv- 
ed at institutions of higher learning; to 
extend the sales tax to dormitory rentals at 
institutions of higher learning; to define 
religious, educational and charitable insti- 
tutions entitled to the exemption; amending 
Section 212.04(1) (2) ; 212.02(16), Florida 
Statutes to remove restrictions on admis- 
sions now limited by federal excise tax; re- 
peal Section 212.03(4) (6), Florida Stat- 
utes, to remove sales tax exemption on 
lodging and rentals in excess of one hun- 
dred days amend Chapter 212.081, Florida 
Statutes by adding a new section numbered 
212.081(5) to express the legislative intent 
that the sales tax apply to purchases made 
by state and federal banks. 

Be it enacted by the Legislature of the State 
of Florida: 

Section 1. Section 212.08(8) (a), Florida 
Statutes, is amended to read: 

212.08(8) (a) Miscellaneous exemptions. — 

(a) Religious, charitable and educational. — 
There shall be exempt from the tax imposed 
by this chapter articles sold or leased to or by 
churches, or sold or leased to other nonprofit 
religious, nonprofit educational, or nonprofit 
charitable institutions in the course of 
their customary nonprofit religious, non- 
profit educational or nonprofit charitable 
activities, including church cemeteries. 
Excepting however, from the exemption, 
meals served at institutions of higher 
learning and dormitory or room rentals at 
institutions of higher learning. Likewise ex- 
empt are admissions to athletic contests for 
other sports events not prohibited by law, the 
proceeds of which go entirely to the support 
of the hospital for crippled children which 



10 



65 



hospital is subsidized by the Florida Crippled 
Children's Commission out of the state fund. 
Provided that in order to qualify for such 
exemption no part of the net proceeds of 
such athletic contest or other sports event 
shall inure to the benefit of any private stock- 
holder or individual. Also exempt from pay- 
ment of the tax imposed by this chapter on 
rentals and meals are patients, inmates and 
guests of any hospital or institution designed 
and operated primarily for the care of per- 
sons who are ill, aged, infirm, mentally or 
physically incapacitated or for any other rea- 
son dependent upon special care or attention. 
Also exempt are school books and school 
lunches, in the public school system of the 
state, provided however, that the provisions 
of this section authorizing exemptions from 
tax, shall be strictly defined and limited in 
each class or category as follows: (1) reli- 
gious institutions shall mean churches and 
established physical facilities for worship at 
which are regularly conducted and carried on 
nonprofit religious activities. (2) Educational 
institutions shall mean state tax supported 
parochial church and nonprofit private schools, 
colleges or universities conducting regular 
classes and courses of study required for 
eligibility to certification by accreditation to 
or membership in the Southern Association of 
Colleges and Secondary Schools, State Depart- 
ment of Education or the Florida Council of 
Independent Schools. (3) Charitable institu- 
tions shall mean nonprofit corporations op- 
erating physical facilities in Florida engaged 
in nonprofit charitable services. 

Section 2. Section 212.04(1) (2), Florida 
Statutes, are amended to read: 

212.04(1) Admissions tax; rate; proced- 
ure; enforcement; etc. — At the rate of 3 per- 
cent of sales price, or the actual value received 
for such admissions said 3 percent to be 
added and collected with all such admissions 
from the purchaser thereof and such tax shall 
be paid for the exercise of the privilege as 
defined in the preceding paragraph. Where 
a group is admitted at a reduced or flat fee 



or strips of tickets are sold for less than 
the regular and usual rate, the tax due shall 
be computed and collected on the basis of the 
price of each individual ticket or admission. 

(2) The sale price or actual value of ad- 
mission shall for the purpose of this chapter, 
be that price remaining after deduction of 
federal taxes, if any, imposed upon said ad- 
mission and the rate of tax on each admission 
shall be according to the brackets established 
by Section 212.12(10). There shall be ex- 
empt all admissions to places of amusement 
operating under the supervision of the State 
Racing Commission. 

Section 3. Section 212.02 (16) , Florida Stat- 
utes, is amended to read : 

Section 212.02(16) Definitions.— The term 
admissions shall mean and include the net 
sum of money after deduction of any federal 
taxes for admitting a person or vehicle or 
persons or any place of amusement or where 
there is any show, game or exhibition and 
where any charge is made by way of sale of 
tickets, gate charges, seat charges, box 
charges, season pass charges and cover 
charges. 

Section 4. Section 212.03(4) (6), Florida 
Statutes, are hereby repealed. 

Section 5. Section 212.081, Florida Stat- 
utes, is amended by adding a new section num- 
bered Section 212.081(5) expressing legisla- 
tive intent as follows: 

Section 212.081(5) It is hereby declared 
to be the legislative intent that all purchases 
made by state and federal banks are subject 
to state sales tax in the same manner as is 
provided by law for all other purchasers. It 
is further declared to be the legislative intent 
that if for any reason, the sales tax on fed- 
eral banks is declared invalid, that sales tax 
shall not apply or be applicable or purchases 
made by state banks. 

Section 6. This act shall become effective 
immediately upon becoming law. 



66 



10. GENERAL PROCEDURAL 
CHANGES 

Amendments which eliminate incon- 
sistencies, clarify conflicting sections, and 
conform to rulings of Florida Supreme 
Court, etc. 

a. Amend Section 212.07(2) (4), Flor- 
ida Statutes, to eliminate choice upon part 
of dealer relative to crediting tax upon in- 
voices, bills of sale, or other charges of 
sale. 

The Florida Sales and Use Tax Law has 
been held to be a vendors tax but there is 
a definite duty and obligation to pass the 
tax on to the consumer as far as is practi- 
cal. The present wording of the statute, 
212.07(4) provides that no person shall 
advertise or hold out to the public that he 
will absorb the tax or relieve the seller 
from the payment of any or all of the tax 
due. However, this is only true as to ad- 
vertising, either directly or indirectly or 
by inference that the tax will be absorbed 
by the seller. The change in subsections 
212.07(2) (4) strengthens the requirement 
that the tax shall be added to the selling 
price of the property sold and eliminates 
any procedure for refund or rebate of the 
tax to the purchaser by way of credit mem- 
oranda, special discounts not ordinarily 
given or through any other device of ac- 
counting. 

These two amendments will help in the 
administration and audit enforcement by 



the Comptroller and reduce unfair busi- 
ness advantages between vendors engaged 
in similar businesses. 

b. Amend Section 212.08(4), Florida 
Statutes to change the term "orders" to 
"each order." This word has been con- 
strued by some to mean a group of or 
more than one order. To agree that the 
Legislative intent of this section was to 
permit multiple orders would nullify the 
restriction and permit unlimited purchases 
for $1,000 tax. This change will make the 
limitation apply to each order. 

c. Amend Section 212.08(9), Florida 
Statutes, by substituting in the fourth sen- 
tence the word "thereof" for "therefore." 

The misuse of one word here is involved. 
In the very first sentence the word "there- 
of" is used. In the fourth sentence ther- 
fore is employed. Where the intent is to 
restrict proration to vessels and parts 
thereof, the word "therefor" as later used, 
could be construed to cover a much wider 
area of tangible items. 

d. Amend Section 212.10(3), Florida 
Statutes, to provide that garnishment will 
lie against any assets of record at pre- 
cise time of notice. The expanded cov- 
erage sought here is outlined midway of 
the subsection, beginning "All persons no- 
tified shall likewise, within five days," and 
ending with the sentence and word "ear- 
lier." The purpose is to cause garnish- 
ment to lie against any assets of record 



11 

12 

13 
14 



15 



16 
17 

18 
19 

20 
10 



67 



at instant of notice and extending to any 
further credits accruing during the 60 day 
period. 

e. Amend Section 212.12(12), 212.13 
(4), Florida Statutes, to require registered 
dealers under the sales tax to keep and 
maintain business records for 3 years. 

The only purpose of each of these two 
amendments is to make 3 years a period 
for which dealers are required to keep 
and maintain business records for the 
Comptroller's inspection. 

The legal period of nonclaim is three 
years. Frequently it is necessary to go to 
the records of the supplier or the sourcei of 
tangible personal property to determine li- 
ability. Satsfactory audit or varification 
cannot be had unless records are required 
to be kept for a full three years permitted 
by Law. 

f. Amend Section 212.14(3) (6), Flor- 
ida Statutes, by adding to the requirement 
that registered dealers file Tax Reports; 
that they also pay the taxes due. The 
amendment adds the word "and pay the 
taxes due." Filing of a tax report without 
remitting the money due is not adequate. 
Several attempts to bring about enforce- 
ment by misdemeanor charges have been 
dismissed by the courts because the spe- 
cific wording of the statute as now writ- 
ten had not been violated. In addition 
dealers failing to file a tax report will be 



subject to interest on the amount due at 
the rate of six percent per annum, the 
filing of a return not accompanied by pay- 
ment is prima facie evidence of conversion 
of the money due. 

g. Amend Section 212.15(4), Florida 
Statutes, to provide that any taxpayer ap- 
plying for re-hearing or re-examination be- 
fore the Comptroller must file an original 
and one copy of exceptions and objections 
to the examination with the Comptroller 
ten days before the date set for re-hearing. 
This requirement will allow the Comptrol- 
ler time in which to study the points in 
question and review the matter to be pre- 
sented. The amendment also provides that 
review of the Comptroller's decision be 
brought in Leon County. The Supreme 
Court has so ruled. (Henderson v. Gay, 
24 So. 2d 325, at 327; Subparagraph 5,) 
"In this action we find the simple provision 
that any person who has received an ad- 
verse decision from the Comptroller shall 
have the right within a certain period to 
have the Comptroller's determination re- 
viewed in appropriate proceedings in any 
of the circuit courts of Florida. We are 
unable to construe this provision of the 
statute as giving every taxpayer who is 
dissatisfied with the determination of the 
Comptroller . . . , the absolute right to go 
into any circuit court of the state and dis- 
pute the claim of the Comptroller to the 



68 



privilege of being sued at the seat of gov- 
ernment, secure a ruling in the court of 
his choice. Thus to hold, would, in our 
opinion, not take into account the reasons 
we have expressed for the rule, such as the 
securing of the uniformity of decisions in 
various controversies throughout the state 
in the economical and expeditious hand- 
ling of the affairs of the Comptroller's Of- 
fice." 

h. Add Section 212.15(5), Florida Stat- 
utes. This subsection is self explanatory. It 
requires posting of bond or other surety in 
the full amount of claimed liability in liti- 
gated cases to financially protect the state 
pending the outcome of the litigation. 

i. Amend Section 212.16(1) (2) (3), to 
provide that a Certificate of Registration 
and Importation Permit be obtained to 
eliminate the renewal of importation per- 
mit on an annual basis. To provide that 
the import permits be carried in or on 
the motor vehicle; and to authorize the 
Comptroller to place in custody of any 
sheriff or constable for safe keeping, the 
seized vehicle and cargo as well as pro- 
viding cost for this service. These proced- 
ural changes are recommended by the 
Committee as being almost imperative to 
meet the administrative problems faced by 
the Comptroller's office in enforcement di- 
visions. 

j. Amend Section 212.18(3) to strike 
out the words "within the state" and to 



insert the words "or after being cancelled 
by the Comptroller." This will make it a 
violation for a dealer to continue to do 
business after registration has been can- 
celled and make it a misdemeanor for an 
individual or an officer to operate a busi- 
ness without registration; and authorizes 
injunctions where necessary. 

This amendment in three particulars is 
designed to improve enforcement. First 
the words "within the state," as to loca- 
tions required to be registered are elimi- 
nated. Under present law and court de- 
cisions, out-of-state concerns doing busi- 
ness in Florida are required to be regis- 
tered dealers. Second, the word "or after 
being cancelled by the Comptroller" are 
inserted to make it a violation for a dealer 
to continue to do business after registra- 
tion has been legally cancelled. This is 
needed to improve the state's position in 
injunction proceedings where applicable. 
Third, the new and final sentence specifi- 
cally makes it a misdemeanor for an indi- 
vidual or co-partnership to operate a busi- 
ness without obtaining registration and di- 
rectly authorizes injunction where neces- 
sary in such cases. 

Suggested draft of procedural bill— 

A BILL 

TO BE ENTITLED 

AN ACT relating to tax on sales, use and 
certain transactions; amending Section 
212.07, Subsections (2) and (4), Florida 
Statutes, relative to tax added to purchase 



11 

12 

13 
14 



15 



16 
17 

18 
19 



20 



69 



price; amending Section 212.08, Subsec- 
tions (4) and (9), Florida Statutes, rela- 
tive to specified exemptions; amending Sec- 
tion 212.10, Subsection (3), Florida Stat- 
utes, relative to delinquent payments by deal- 
ers; amending Section 212.12, Subsection 
(12), Florida Statutes, relative to records; 
amending Section 212.13, Subsection (4), 
Florida Statutes, relative to records of 
wholesalers; amending Section 212.14, Sub- 
sections (3) and (6) relative to assess- 
ments; amending Section 212.15, Subsec- 
tion (4), Florida Statutes, relative to ap- 
peals for rehearing, and adding Subsec- 
tion (5) providing prerequisites for insti- 
tuting court action testing validity of tax; 
amending Section 212.16, Subsections (1), 
(2) and (3), Florida Statutes, relative to 
importation of goods permits; amending 
Section 212.18, Subsection (3), Florida 
Statutes, relative to qualifying as a dealer. 

Be It Enacted by the Legislature of the State 
of Florida: 

Section 1. Section 212.07, Subsections (2) 
and (4) Florida Statutes, are amended to 
read: 

212.07 Same; tax added to purchase price; 
dealer not to absorb; penalties; general ex- 
emptions. — 

(2) Dealers shall as far as practicable add 
the amounts of the tax imposed under this 
chapter to the sale price and the tax shall 
be separately stated on any charge tickets, 
sales slips, invoices, or other tangible evi- 
dence of sale, and such tax shall constitute 
a part of such price, charge or proof of sale 
which shall be a debt from the purchaser or 
consumer to the dealer, until paid, and shall 
be recoverable at law in the same manner as 
other debts. Any dealer who shall neglect, 
fail or refuse to collect the tax herein pro- 
vided, upon any, every, and all retail sales 
made by him, or his agents, or employees, of 
tangible personal property which is subject 
to the tax imposed by this chapter shall be 
liable for and pay the tax himself. 

(4) A dealer engaged in any business tax- 
able under this chapter shall not advertise or 
hold out to the public, in any manner, direct- 
ly or indirectly, that he will absorb all or 
any part of the tax, or that he will relieve 
the purchaser of the payment of all or any 



part of the tax, or that the tax will not be 
added to the selling price of the property 
sold or released or when added that it or any 
part thereof will be refunded either directly 
or indirectly by any method whatsoever. A 
person who violates this provision with re- 
spect to advertising or refund shall be guilty 
of a misdemeanor and upon conviction shall 
be punished by a fine of not less than twenty- 
five dollars, nor more than two hundred fifty 
dollars, or imprisonment in the county jail 
for not exceeding three months, or both, in 
the discretion of the court. For a second or 
subsequent offense, the penalty shall be dou- 
ble. 

Section 2. Section 212.08, Subsections (4) 
and (9), Florida Statutes, are amended to 
read: 

212.08 Sales, rental, storage, use tax; spec- 
ified exemptions. — 

(4) Exemptions, limited; industrial ma- 
chinery. There shall be exempt from the tax 
imposed by this chapter on any single trans- 
action so much of said tax as shall exceed 
one thousand dollars ($1,000.00) on the sale 
or rental to, the use, consumption or storage 
for use in this state of machines and equip- 
ment and parts and accessories therefor used 
in mining and quarrying, compounding, proc- 
essing, producing or manufacturing, personal 
property for sale in this state, or used in fur- 
nishing communication, transportation or pub- 
lic utility services. As used in this subsec- 
tion "single transaction" shall include each 
order placed and accepted for the sale and 
delivery within six months by one supplier, 
and the use in one particular location of spe- 
cifically described items on which this exemp- 
tion is allowed; and the term "machines and 
equipment and parts and accessories there- 
for" shall mean only such machines, machin- 
ery and equipment and parts and accessories 
therefor which are specifically designed for 
use in some phase or process of the opera- 
tions mentioned in this subsection. The 
Comptroller is authorized to further define 
the terms used herein by rules and regula- 
tions not inconsistent herewith for the pur- 
pose of uniformity in the enforcement of this 
subsection. 

(9) Partial exemptions, vessels engaged 
in interstate or foreign commerce. — All ves- 
sels and parts thereof used to transport per- 



70 



sons or property in interstate or foreign com- 
merce shall be subject to the taxes imposed 
in this chapter only to the extent provided 
herein. The basis of the tax shall be the 
ratio of intrastate mileage to interstate or 
foreign mileage traveled by the carrier dur- 
ing the previous fiscal year. The ratio would 
be determined at the close of the carrier's 
fiscal year. This ratio applied to the total 
purchases by the carriers of vessels and parts 
thereof each month to establish that portion 
of the total used and consumed in intrastate 
movement and subject to tax at the applicable 
rate. Vessels and parts thereof used to trans- 
port persons or property in interstate and for- 
eign commerce are hereby determined to be 
susceptible to a distinct and separate classi- 
fication for taxation under the provisions of 
Chapter 212. 

Section 3. Section 212.10, Subsection (3) 
Florida Statutes, is amended to read: 

212.10 Sale of business; liability for tax, 
procedure, penalty for violation. — 

(3) In the event any dealer is delinquent 
in the payment of the tax herein provided 
for, the comptroller may give notice of the 
amount of such delinquency by registered 
mail to all persons having in their possession 
or under their control any credits or other 
personal property belonging to such dealer 
or owing any debts to such dealer at the 
time of receipt by them of such notice. All 
persons so notified shall within five (5) days 
after receipt of the notice advise the comp- 
troller of all such credits, other personal prop- 
erty, or debts in their possession, under their 
control, or owing by them. After receiving 
the notice the persons so notified shall nei- 
ther transfer nor make any other disposition 
of the credits, other personal property, or 
debts in their possession or under their con- 
trol at the time they receive the notice until 
the comptroller consents to a transfer or dis- 
position or until sixty (60) days elapse after 
the receipt of the notice, whichever period 
expires the earlier. All persons notified shall 
likewise within five (5) days advise the comp- 
troller of any subsequent credits or other per- 
sonal property belonging to such dealer or 
any debts incurred and owing to such dealer 
which may come within their possession or 
under their control during the time prescribed 
by the notice or until the comptroller con- 
sents to a transfer or disposition whichever 



expires the earlier. If such notice seeks to 
prevent the transfer or other disposition of 
a deposit in a bank or other credits or per- 
sonal property in the possession or under the 
control of a bank, the notice to be effective 
shall be delivered or mailed to the office of 
such bank at which such deposit is carried or 
at which such credits or personal property 
is held. If, during the effective period of 
the notice to withhold, any person so notified 
makes any transfer or disposition of the prop- 
erty or debts required to be withheld here- 
under, to the extent of the value of the prop- 
erty or the amount of the debts thus trans- 
ferred or paid he shall be liable to the state 
for any indebtedness due under this chapter 
from the person with respect to whose obli- 
gation the notice was given if solely by rea- 
son of such transfer or disposition the state 
is unable to recover the indebtedness of the 
person with respect to whose obligation the 
notice was given. All such credits or other 
personal property or debts are subject to 
garnishment by the comptroller for satisfac- 
tion of the delinquent tax due. 

Section 4. Section 212.12, Subsection (12), 
Florida Statutes, is amended to read: 

212.12 Dealer's credit for collecting tax; 
penalties for noncompliance ; powers of comp- 
troller in dealing with delinquents; brackets 
applicable to taxable transactions; records re- 
quired. — 

(12) In order to aid the administration 
and enforcement of the provisions of this 
chapter with respect to the rentals, each 
lessor of any hotel, apartment house, rooming 
house, tourist or trailer camp, or any interest 
therein, or any portion thereof, inclusive of 
owners, property managers, lessors, landlords, 
hotel, apartment house and rooming house op- 
erators and all licensed real estate agents 
within the state leasing or renting such prop- 
erty, shall be required to keep a record of 
each and every such lease and/or rental trans- 
action which is taxable under this chapter, in 
such a manner and upon such forms as the 
comptroller may prescribe, and to report such 
transaction to the comptroller, or his desig- 
nated agents, and to maintain such records for 
a period of not less than three years, subject 
to the inspection of the comptroller and his 
agents, and failure of such owner property 
manager, lessor, landlord, hotel, apartment 



11 

12 

13 
14 



15 



16 
17 

18 
19 



20 



71 



house, rooming house, tourist or trailer camp 
operator, or real estate agent to keep and 
maintain such records and to make such re- 
ports upon the forms and in the manner pre- 
scribed, shall be deemed to be a misdemeanor 
and upon conviction such owner, property 
manager, lessor, landlord, hotel apartment, 
rooming house, tourist or trailer camp op- 
erator, receiver of rent, property manager or 
real estate agent shall be subject to a fine 
of not less than fifty dollars, nor more than 
two hundred dollars or imprisonment in the 
county jail for not less than ten days nor more 
than thirty days, or both, for the first offense; 
and for subsequent offenses, they shall each 
be subject to a fine of not more than five hun- 
dred dollars and by imprisonment in the 
county jail of not more than six months, or 
by both such fine and imprisonment. 

Section 5. Section 212.13, Subsection (4), 
Florida Statutes, is amended to read : 

212.13 Records required to be kept; potoer 
to inspect. — 

(4) For the further purpose of enforce- 
ment of this chapter every wholesaler of tang- 
ible personal property licensed within this 
state is required to permit the comptroller to 
examine their books and records at all reason- 
able hours. They must also maintain such 
books and records for a period of not less 
than three years in order to disclose the sales 
of all goods sold, and to whom sold, and also 
the amount of items sold, in such form and 
in such manner as the comptroller may reas- 
onably require, and so as to permit the comp- 
troller to determine the volume of goods sold 
by wholesalers to dealers, as defined under 
this chapter, and the dates and amounts of 
sales made. The comptroller may require any 
manufacturer or wholesaler who refuses to 
keep such records or to permit such inspec- 
tion through the circuit courts of Florida to 
submit to such inspection, subject however to 
the right of removal of the cause as herein- 
before provided in this section. 

Section 6. Section 212.14, Subsections (3) 
and (6) Florida Statutes, are amended to 
read : 

212.14 Comptroller's powers; hearings, 
subpoena; distress warrants; time for assess- 
ments. 

(3) The comptroller may require all reports 



of taxes to be paid under this chapter to be 
accompanied with a written statement, of the 
person or by an officer of any firm or corpora- 
tion required to pay such taxes setting forth 
such facts as the comptroller may reasonably 
require in order to advise the comptroller as 
to the amount of taxes that are due and pay- 
able upon said return. Filing of return not 
accompanied by payment is prima facie evi- 
dence of conversion of the money due. Any 
person or any duly authorized corporation 
officer or agent, members of any firm or in- 
corporated society, or organization who re- 
fuses to make a return and pay the taxes due, 
as required by the comptroller and in the 
manner and in the form that the comptroller 
may require, or to state in writing that the 
return is correct to the best of his knowl- 
edge and belief, as so required by the comp- 
troller, shall be subject to a penalty of 6% 
per annum of the amount due and shall upon 
conviction, be deemed guilty of a misdemeanor 
and shall be punished accordingly. The signing 
of a written return shall have the same legal 
effect as if made under oath without the 
necessity of appending such oath thereto. 

(6) The amount of any tax imposed under 
this chapter may be determined and assessed 
for a period of three years after the tax be- 
came due and payable. The beginning of the 
three (3) year period for determination and 
assessment of tax due shall be the first day 
of the month corresponding to the month in 
which a request for inspection and examina- 
tion of the books and records has been made 
by the comptroller. No suit or other proceed- 
ing, without assessment, for the collection of 
such tax shall be begun after the expiration 
of such period. 

Section 7. Section 212.15, Subsection (4), 
Florida Statutes, is amended, and Subsection 
(5) is added, each to read: 

212.15 Taxes declared state funds, penal- 
ties for embezzlement; due and delinquent 
dates; appeals. — 

(4) If any taxpayer or person required by 
this chapter to remit taxes to the comptroller 
shall feel aggrieved by any action of the comp- 
troller, he shall have the right within thirty 
days to appeal to the comptroller for rehear- 
ing and re-examination and in support thereof 
may submit such data as may be relevant. All 
exceptions and objections to the actions of the 



72 



_ 



comptroller must be filed with the comptroller 
in duplicate at least ten (10) days prior to the 
date set for such rehearing and re-examina- 
tion. If the comptroller's decision is deter- 
mined adversely to the taxpayer or person 
required by this chapter to remit to the comp- 
troller, such person shall have the right within 
thirty days from notice of such determination 
to have the comptroller's determination re- 
viewed in appropriate proceedings in the cir- 
cuit court of Leon County, Florida, and in 
such review there shall be no presumption in 
favor of the comptroller's findings. 

(5) In any action involving the legality of 
any tax assessed under this chapter, the court 
shall inquire into and determine the legality 
and validity of the same and shall render 
decrees setting aside such tax assessment or 
any part of the same which is contrary to 
law, provided that the complainant shall in 
every case, except where the taxes assessed, 
including interest and penalties, have been 
paid to the state comptroller prior to the 
institution of suit, tender into court and file 
with the complaint the full amount of the 
assessment complained of, including any in- 
terest and penalties included in such assess- 
ment, or file with the complaint a cash bond, 
surety bond endorsed by a surety company 
authorized to do business in this state, or by 
such sureties as may be approved by the court, 
conditioned to satisfy any judgment or decree 
in full, including the taxes complained of, 
costs, interest and penalties. 

Section 8. Section 212.16, Subsections (1), 
(2), and (3), Florida Statutes are amended to 
read : 

212.16 Importation of goods, permits; 
seizure for noncompliance, procedure, review. 

(1) For the protection of the revenue of 
this state, to prevent the illegal importation of 
tangible personal property which is subject to 
tax in this state, and to strengthen and make 
more effective the manner and method of en- 
forcing payment of the tax imposed by this 
chapter, the comptroller is hereby authorized 
and empowered to put into operation, a system 
of permits whereby any person or dealer as 
defined in this chapter may import tangible 
personal property by truck, automobile, or 
other means of transportation other than a 
common carrier, without having said truck, 
automobile, or other means of transportation 



seized and subject to legal proceedings for its 
forfeiture. Such system of permits shall re- 
quire the person or dealer who desires to im- 
port tangible personal property into this state, 
which property is subject to tax imposed by 
this chapter, to apply to the comptroller or 
his designated agent for a certificate of regis- 
tration and a permit stating the kind of 
vehicle used, the name of the driver, the li- 
cense number of the vehicle, the kind or char- 
acter of tangible personal property to be im- 
ported, the date, the name and address of the 
consignee and such other information as the 
comptroller may deem necessary to prevent the 
illegal transportation of tangible personal 
property into this state. Such certificate of 
registration and permit shall be free of cost 
to the applicant and forms for such certificate 
of registration and permit may be obtained 
from the comptroller or his designated agents. 

(2) The importation into this state of 
tangible personal property which is subject 
to tax, by truck, automobile, or other means 
of transportation other than a common car- 
rier without having first obtained a certificate 
of registration and permit as hereinabove de- 
scribed, (if the tax imposed by this chapter 
on the said tangible personal property has not 
been paid) shall be construed as an attempt 
to evade payment of the said tax and the 
same is hereby prohibited and the said truck, 
automobile or other means of transpoi'tation, 
other than that of common carrier, and said 
taxable property may be seized by the comp- 
troller in order to secure the same as evidence 
in a trial and the same shall be subject to 
forfeiture and sale in the manner provided 
for in this chapter. No certificate of regis- 
tration or permit shall be required to trans- 
port personal effects of a driver, owner, or 
passengers of any private automobile or car- 
rier vehicle not engaged in carrying goods 
for resale within the state. The comptroller 
may issue a certificate of registration and 
permit to a person who is regularly or fre- 
quently importing into this state tangible 
personal property in trucks owned by him in 
connection with his own business, requiring 
that reports, copies of sales documents, and 
other information may be filed at regular or 
frequent intervals with the comptroller after 
importation of tangible personal property sub- 
ject to the tax, and the comptroller may re- 
quire as a condition for the issuance of such 



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certificate of registration and permit that 
such person post a bond payable to the comp- 
troller in an amount sufficient to guarantee 
payment of the tax on such goods as may be 
imported by such person, which amount the 
comptroller shall set. 

(3) Subject to the above stated exception 
of private vehicles, any truck, automobile, or 
other means of transportation other than a 
common carrier which is used to import into 
this state tangible personal property which is 
subject to tax under this chapter, together 
with the contents thereof, is hereby declared 
to be contraband to subject to confiscation 
unless a certificate of registration and permit 
as hereinabove described was first obtained. 
The comptroller may confiscate any such truck, 
automobile, or other means of transportation 
other than a common carrier together with 
its contents whenever the same is found to be 
importing without the certificate of registra- 
tion and permit tangible personal property, 
the sale or use of which is taxable under this 
chapter. Such permit shall be posted in or on 
the vehicle or made immediately available for 
inspection. The comptroller or his agent is 
authorized hex-eby to turn over to any sheriff 
or constable for safe keeping any vehicle or 
property seized hereunder, and such sheriff 
or constable shall collect from the vehicle 
owner costs provided by the general law for 
performing similar service. 

Section 9. Section 212.18, Subsection (3), 
Florida Statutes, is amended to read: 

212.18 Administration of law; miles and 
regulations. — 

(3) Every person desiring to engage in or 
conduct business as a dealer as defined in this 
chapter, or in leasing, renting or letting of 
living quarters, sleeping or housekeeping ac- 
commodations in hotels, apartment houses, 
rooming houses, tourist or trailer camps, as 
hereinbefore defined in this chapter, in this 
state shall file with the comptroller a certifi- 
cate of registration for each place of business, 
show the name of the intei'ested persons in 



such business, their residences, the address of 
the business, and such other data as the comp- 
troller may reasonably require. Such applica- 
tion shall be made to the comptroller on or 
before thirty days after Novemer 1, 1949, on 
or before such person, firm or corporation may 
engage in such business, and it shall be ac- 
companied by a registration fee of one dollar. 
The comptroller, upon receipt of such applica- 
tion will grant to the applicant, a separate 
certificate of registration for each place of 
business which certificate shall not be assign- 
able and shall be valid only for the person, 
firm or corporation to whom issued, and such 
certificate shall be placed in a conspicuous 
place in the business or businesses for which 
it is issued, and so displayed at all times. No 
person shall engage in business as a dealer, or 
in leasing, renting or letting of living quar- 
ters, sleeping or housekeeping accommoda- 
tions in hotels, apartment houses, rooming 
houses, tourist or trailer camps, as herein- 
before defined in this chapter, on or before 
thirty days after November 1, 1949, without 
first having obtained such a certificate, and 
no person shall receive any license from any 
authority within the state to engage in any 
such business after November 1, 1949, with- 
out first having obtained such a certificate. 
The engaging in the business of selling or 
leasing tangible personal property or as a 
dealer as defined in this chapter, or engaging 
in leasing, renting or letting of living quar- 
ters, sleeping or housekeeping accommoda- 
tions in hotels, apartment houses, or rooming 
houses, or tourist or trailer camps, as herein- 
before defined in this chapter, without such 
certificate first had and obtained within the 
time limits set forth above, or after being 
cancelled by the comptroller, is hereby pro- 
hibited. Failure or refusal of any individual or 
copartnership to so qualify where required 
hereunder is a misdemeanor subject to maxi- 
mum fine of five hundred dollars ($500.00) or 
six months in jail, either or both; or to in- 
junctive proceedings as provided by law. 



Section 10. 
1, 1961. 



This act shall take effect July 



74 



11. MOTOR VEHICLE LICENSES 

a. Amend Section 320.08(2), Florida 
Statutes, by eliminating the $5.00 license 
fee classification for passenger vehicles. 

b. Amend Section 320.08(10), Florida 
Statutes, to increase dealers' demonstra- 
tion tag from $10.00 to $20.00. 

c. Amend Section 320.04(1), Florida 
Statutes, to provide a service charge of 500 
for each license plate, rather than the 250 
service charge now established. 
REASONS FOR RECOMMENDATION 

a. The recommendation for the elimi- 
nation of the $5.00 license tag ( or "T" tag 
as it is commonly referred to) is primarily 
because of the loss of revenue to the state 
from the increased popularity of the com- 
pact car, although higher production and 
handling costs are a factor. In 1955 0.8 
percent of new car registrations were com- 
pacts. Estimates below show this change. 





PERCENT COMPACTS 


YEAR 


OF TOTAL 


1958 


16.0 


1959 


22.2 


1960 


29.8 



As the popularity of the compact car 
continues to mount, it is deemed necessary 
by the Committee to eliminate this $5.00 
classification. 
REVENUE EFFECT 

The elimination of the $5.00 classifica- 
tion for "T" tag on passenger vehicles will 



produce approximately five hundred thou- 
sand dollars in additional revenue per 
annum. 

b. The increase in dealer demonstration 
tag from $10.00 to $20.00 is recommended 
because of misuse of this type of tag. The 
Committee has received reports from 
throughout the state that dealer demon- 
stration tags, not being closely controlled 
are used year round on vehicles owned by 
dealers, members of their families and 
friends. Such use of this $10.00 tag de- 
prives the state of the revenue which 
would be derived if the proper tag were 
purchased for the automobile. 
REVENUE EFFECT 

This change would result in approxi- 
mately one hundred fifty thousand dollars 
in additional revenue per annum. 

c. Section 320.04, Florida Statutes, pro- 
vides a service charge of 250 to be paid 
to the county agency selling automobile 
license tags. In many instances this fee 
has been insufficient to meet the cost of 
selling the tags. The counties are having 
to make up the deficit out of the county 
general revenue fund. To offset this loss it 
is felt that a modest increase from 250 
to 500 per tag is warranted. 

Suggested Draft of Motor Vehicle Bill 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation; relating to 
motor vehicle licenses; amending Section 



75 



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320.08(2), Florida Statutes, to eliminate 
the "T" Series License Tag; amending Sec- 
tion 320.08(10), increasing dealers' dem- 
onstration tag to $20.00 ; amending Section 
320.04(1), Florida Statutes to provide a 
service charge of 50r/. 

Be it enacted by the Legislature of the State 
of Florida: 

Section 1. Section 320.08(2), Florida Stat- 
utes, is amended to read: 

Section 320.08(2) Automobiles for private 
use. — 

"Q" Series: Antique automobiles: $5.00 flat. 
"D" Series: Net weight of less than 2,500 
pounds: $10.00 flat. 

"Plain" Series: Net weight of 2,500 pounds 
or more, but less than 3,500 pounds: $15.00 
flat. 

"W" Series: Net weight of 3,500 pounds or 
more, but less than 4,500 pounds: $20.00 flat. 
"WW" Series: Net weight of 4,500 pounds or 
more, $25.00 flat. 

Section 2. Section 320.08(10), Florida Stat- 
utes, is amended to read: 

Section 320.08(10) Dealers' demonstration 
tags. — "M" Series : All dealers' demonstration 
tags : $20.00 flat. 

Section 3. Section 320.04(1), Florida Stat- 
utes, is amended to read : 



Section 320.04(1) There shall be a service 
charge of fifty cents for each application 
which is handled, which service charge shall 
be collected from the applicant as compensa- 
tion for all services rendered in connection 
with the handling of the application. Said fee 
shall be retained by the tax collector as other 
fees accruing to the tax collector's office. Pro- 
vided, however, that each tax collector shall be 
entitled to receive minimum compensation of 
five hundred dollars per year for his said serv- 
ices as agent for the motor vehicle commis- 
sioner. Each tax collector of the state who is 
affected by this law shall, as soon as practic- 
able after November 30th of each year, file a 
written report with the motor vehicle com- 
missioner showing the amount of all fees re- 
ceived by him under the provisions of this sec- 
tion since the last such report was filed; such 
report shall be filed not later than January 
15th of each year and the motor vehicle com- 
missioner, or such other person as may be 
now or hereafter authorized by law, after 
auditing and verifying such report is hereby 
authorized and directed to make requisition 
on the comptroller who shall issue his war- 
rant to such tax collector out of the general 
revenue fund in an amount sufficient to cover 
the difference between the said fees collected 
by the tax collector and the minimum amount 
as provided by this law. 

Section 4. This act shall become effective 
immediately upon becoming law. 



76 



12. MOBILE HOMES 

a. Require registration of all mobile 
homes under administrative framework 
already in existence for motor vehicles. 

b. Provide $25.00 license tags for mo- 
bile homes. 

REASONS FOR RECOMMENDATION 

a. The law presently provides for the 
licensing of mobile homes under the mo- 
tor vehicle licensing law or taxation of 
mobile homes as tangible personal prop- 
erty. The choice as to which means of 
taxation is left to the mobile home owner. 
While all mobile homes are legally sub- 
ject to one of these taxes, the actual re- 
sult is that they often escape taxation. 
Those that choose the personal property 
tax may be moved out of the trailer parks 
during the assessment period. There is in- 
sufficient checking to determine their prop- 
er tax status and the assessment practice 
by county assessors varies widely from 
one jurisdiction to another. In certain 
growth areas of the state, mobile homes 
are extremely popular and number in the 
thousands. If the owners thereof, choose 
to buy the license tag, they do not con- 
tribute to the support of local governments. 
In most counties the property tax would 
be several times greater than the cost of 
the license tag and somewhat inequitable 
because trailers used as homes cannot be 
considered homesteads. There is also the 



question as to whether a distinction should 
be made between the trailers that are 
regularly employed as a place of abode 
and those that are less frequently used 
for trips and vacations. This recommenda- 
tion is designed to require that all trailer 
owners register their trailer annually so 
that all may be taxed whether they choose 
to be taxed as personal property or pur- 
chase the license tag. 

b. The increase in the trailer license tag 
from $10.00 to $25.00 is recommended to 
help offset the cost of many governmental 
services furnished trailer owners. Although 
the license tag revenue does not go to 
local governments, the increase will tend 
to induce some trailer owners using their 
mobile home as a residence to pay prop- 
erty tax rather than the trailer tag fee. It 
is considered that this increase will pro- 
duce a more equitable balance than is 
presently in effect. 
REVENUE EFFECT 

The increase in the mobile home tag 
from $10.00 to $25.00 will produce approx- 
imately $1,000,000 additional revenue per 
annum. 

Suggested draft of Mobile Homes Bill: 

A BILL 

TO BE ENTITLED 

AN ACT relating to Motor Vehicle Licenses; 
amending Chapter 320.02, Florida Statutes, 
to include the term mobile homes; amend- 
ing Chapter 320.081, Florida Statutes, to 
provide for increased license fees for mo- 
bile homes. 



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15 

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19 



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Be It Enacted by the Legislature of the State 
of Florida: 

Section 1. Section 320.02, Florida Stat- 
utes, is amended to read: 

Section 320.02 Application for registra- 
tion; forms. — Every owner or person in charge 
of a motor vehicle, mobile home, trailer coach 
and trailer used for housing accommodation, 
trailer, semi-trailer, or motorcycle sidecar, 
which shall be operated or driven upon the 
highways of the state, or which shall be main- 
tained in this state, shall for each such ve- 
hicle so owned, cause to be annually filed by 
mail or otherwise, in the office of the state 
motor vehicle commissioner, a certified appli- 
cation for registration of same on a blank to 
be furnished for that purpose, containing: 

(1) A description of each motor vehicle to 
be registered, including purpose for which 
it is to be used, the name of the manufac- 
turer, the style, type, engine number, or per- 
manent vehicle identification number, horse- 
power and net weight in pounds, and in case 
of motor trucks, mobile homes, trailers, and 
semi-trailers, the factory rated load capacity, 
as well as the net weight in pounds, accord- 
ing to the standard of the National Automo- 
bile Chamber of Commerce; and in case of 
motor vehicles for carrying passengers, the 
net weight in pounds and the seating capacity. 



(2) The name, age, residence and business 
address of the owner of such vehicle, and also 
the county and state or place, if outside of the 
state, in which he resides. 

Section 2. Section 320.081, Florida Stat- 
utes, is amended to read : 

Section 320.081 License fees for trailer- 
coaches and trailers used for housing accom- 
modations. — 

(1) This secton shall apply only to trailers 
and vehicles not self-propelled used for hous- 
ing accommodations and known as trailer 
coaches. 

(2) The annual license fee to be paid by 
said owners and operators of house trailers in 
the state shall be $25.00; and shall be paid to 
the motor vehicle commissioner of the state 
at the same time and in the same manner as 
provided for other motor vehicle lcenses. This 
license tax shall be in lieu of all other taxes 
and a suitable license plate shall be issued to 
evidence payment thereof. 

(3) It shall be permissible in this state to 
operate a trailer coach, licensed hereunder 
without a corresponding state license on the 
vehicle towing same. 

Section 3. This act shall become effective 
immediately upon becoming a law. 



78 



13. TITLE CERTIFICATES 

a. Amend Section 319.32, Florida Stat- 
utes, to increase the cost of obtaining a 
duplicate original title from 500 to $1.50. 

b. Amend Section 319.23(5), Florida 
Statutes, for failure to transfer title within 
ten days, from $1.00 to $5.00. 
REASONS FOR RECOMMENDATION 

a. It is recommended that the statutory 
fee of .500 for obtaining a duplicate title 
be increased to $1.00. The processing in- 
volved in the issuance of a duplicate title 
by the Motor Vehicle Commission in many 
instances exceeds that required for the is- 
suance of an original. In adhering to 
the policy of reimbursement for services 
performed to pay for the operation of the 
office, this increase is suggested. 

b. Also recommended is that the $1.00 
penalty fee for failure to transfer title 
within ten days from the delivery of a mo- 
tor vehicle be increased. Experience shows 
the small penalty does not have the de- 
sired effect on purchasers. The purpose of 
having this certificate promptly transferred 
is so that records reflect the true ownership 
of the motor vehicle to aid enforcement 
agencies such as the Florida Highway Pa- 
trol, Financial Responsibility Division of 
the Treasurer's Office and the Sales Tax 
Division of the Comptroller's Office. It 
is felt that ten days from the delivery of a 
vehicle gives every purchaser ample oppor- 
tunity to transfer his title. 



Suggested Draft of Title Certificates 
Bill: 

A BILL 
TO BE ENTITLED 

AN ACT relating to motor vehicle title cer- 
tificate fees, amending Section 319.32, Flor- 
ida Statutes to increase the cost of obtain- 
ing a duplicate title and amending Section 
319.23(5), Florida Statutes for failure to 
transfer title within ten days from one 
dollar to five dollars. 

Be It Enacted by the Legislature of the State 

of Florida: 

Section 1. Section 319.32, Florida Statutes 
is amended to read: 

Section 319.32 Fees. — The commissioner 
shall charge a fee of fifty cents for each mem- 
orandum certificate except as provided in Sec- 
tion 319.23. One dollar fifty cents for each 
duplicate copy of the certificate of title; fifty 
cents for each assignment by lien holder and 
a fee of one dollar for each original certifi- 
cate of title. He shall also charge a fee of 
one dollar for noting a lien on a certificate 
which fee shall include the services for the 
subsequent issuance of a corrected certificate; 
the cancellation of lien when that particular 
lien is satisfied. 

He shall charge a fee of fifty cents for 
noting the cancellation of any lien filed prior 
to August 1, 1949. 

All fees collected under this act shall be 
paid into the general revenue fund. 

Section 2. Section 319.23(5), Florida Stat- 
utes is amended to read: 

Section 319.23 Application for and issu- 
ance of certificate. — (5) In the case of the 
sale of a motor vehicle by a dealer to a gen- 
eral purchaser or user the certificate of ti- 
tle shall be obtained in the name of the pur- 
chaser by the dealer upon application signed 
by the purchaser and in all other cases such 
certificates shall be obtained by the purchaser. 
In all cases of transfers of motor vehicles 
the application for certificate of title or cor- 
rected certificate or assignment or reassign- 
ment shall be filed within ten days from the 
delivery of such motor vehicle. An applicant 
shall be required to pay an extra fee of five 



13 
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79 



dollars in addition to all other fees and pen- 
alties required by law for failing to file such 
application within said ten days. License deal- 
ers need not apply for certificates of title 
for such motor vehicles in stock, or where 
such are acquired for stock purposes, but upon 
transfer of same shall either give transferee 



a reassignment of the certificate of title on 
such motor vehicle or shall make notation on 
the face of the application by transferee as 
provided in section 319.21. 

Section 3. This act shall become effective 
immediately upon becoming a law. 



80 



14. DOCUMENTARY STAMP TAX 

a. Amend Section 201.01, Florida Stat- 
utes, to require proper amount of docu- 
mentary stamps to be placed on all re- 
cordable instruments prior to recordation. 

b. Amend Section 201.08(1) (2), Flor- 
ida Statutes, to provide the documentary 
excise tax applies to each $100.00 or frac- 
tional part thereof. 

REASONS FOR RECOMMENDATION 

a. The Committee has received evi- 
dence that not infrequently instruments 
are recorded in the County Clerk's Office 
without having the required amount of 
documentary stamps placed thereon. It is 
felt that this slight modification will elimi- 
nate some of these instances of evasion. 
The effectiveness of this change, will how- 
ever, depend upon the enforcement of the 
provision. Under the present procedure, 
if an instrument requiring stamps is pre- 
sented for recordation without the re- 
quired tax being paid, a report is made to 
the Comptroller and the collection of the 
taxes pursued through state channels. This 
is an awkward and unnecessary procedure. 

b. Amend Section 201.08, Florida Stat- 
utes, providing that the excise tax apply 
to each $100.00 or fractional part thereof. 
This amendment was presented to the 1959 
Legislature and died on the calendar with- 
out action, although approved by Finance 
and Taxation Committee. The only change 



made by this amendment is extending the 
tax to the fractional part of each $100.00. 
REVENUE EFFECTS 

It is estimated by the Committee that 
these changes will produce an additional 
$500,000 in revenue per annum. 

Suggested Draft of Documentary Stamp 

Tax Bills: 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation; amending Sec- 
tion 201.01, Florida Statutes to provide the 
required documentary stamps to be placed 
on all recordable instruments prior to re- 
cordation. 

Be It Enacted by the Legislature of the State 
of Florida: 

Section 201.01, Florida Statutes is amended 
to read : 

Section 201.01 Documents taxable, gener- 
ally. — There shall be levied, collected and paid 
the taxes specified in this chapter, for and in 
respect to the several documents, bonds, deb- 
entures or certificates of stock and indebted- 
ness, and other documents, instruments, mat- 
ters, writings, and things prescribed in the 
following sections or for or in respect of the 
vellum, parchment, or paper upon which such 
document, instrument, matter, writing or 
thing, or any of them are written or printed 
by any person, who makes, signs, executes, 
issues, sells, removes, consigns, assigns, or 
ships the same, or for whose benefit the use 
of same are made, signed, executed, issued, 
sold, removed, consigned, assigned or shipped 
in the state. Provided further that the doc- 
umentary stamp taxes required under this 
chapter shall be affixed to and placed on all 
recordable instruments prior to recordation. 

Section 2. This act shall become effective 
immediately upon becoming law. 

A BILL 

TO BE ENTITLED 

AN ACT relating to excise tax on promissory 
notes, written obligations to pay money and 



81 



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17 

18 
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20 



21 



assignments of wages ; amending Subsec- 
tions (1) and (2) of Section 201.08, Flor- 
ida Statutes, by providing that excise tax 
shall be ten cents (100) per one hundred 
dollars ($100.00) or fractional part there- 
of. 

Be It Enacted by the Legislature of the State 
of Florida : 

Section 1. Subsection (1) of section 201.08, 
Florida Statutes, is amended to read : 

201.08 Tax on promissory notes, written 
obligations to pay money, assignments of 
wages, etc. — 

(1) On promissory notes, non-negotiable 
notes, written obligations to pay money, as- 
signment of salaries, wages, or other com- 
pensation, made, executed, delivered, sold, 
transferred, or assigned in the state, and for 
each renewal of the same on each one hun- 
dred dollars ($100.00) of the indebtedness or 
obligation evidenced thereby, the tax shall be 
ten cents (100) on each one hundred dollars 
($100.00) or fraction thereof. Mortgages 
which incorporate the certificate of indebted- 
ness, not otherwise shown in separate instru- 
ments, are subject to the same tax at the 
same rate. 



Subsection 2. Subsection (2) of section 
201.08, Florida Statutes, is amended to read: 

201.08 Tax on promissory notes, written 
obligations to pay money, assignments of 
wages, etc. — 

(2) On promissory notes, non-negotiable 
notes, written obligations to pay money, or 
other compensation, made, executed, delivered, 
sold, transferred, or assigned in the state, in 
connection with sales made under retail 
charge account services, incident to sales 
which are not conditional in character and 
which are not secured by mortgage or other 
pledge of purchaser, the tax shall be ten cents 
(100) on each one hundred dollars ($100.00) 
or fraction thereof of the gross amount of 
the indebtedness evidenced by said instru- 
ments, payable quarterly on such forms and 
under such rules and regulations as may be 
promulgated by the comptroller. No docu- 
mentary stamps shall be required to be at- 
tached to instruments under the provisions of 
this subsection. 

Section 3. This act shall take effect im- 
mediately upon its becoming a law. 



82 



15. CIGARETTE TAX 

(Non cigarette tobacco) 

Amend Section 210.02, Florida Statutes, 
to extend the excise tax on cigarettes to 
non-cigarette tobaccos such as smoking to- 
bacco and cigars at similar rate of taxation 
as cigarettes. 
REASONS FOR RECOMMENDATION 

There appears to be little equity in tax- 
ing cigarettes when other forms of tobac- 
co consumption are not taxed. This is also 
true from a revenue standpoint. Cigars, 
smoking and chewing tobacco, and other 
tobacco products are recommended for 
inclusion in the excise list. When the 
present cigarette tax law was written in 
1949, pipe tobaccos, cigars and snuff were 
disregarded on the grounds that the tax 
yield would be too small to warrant the 
application of a complicated tax rate to 
these tobacco products. The reason was 
valid in 1949 when the usual complex rates 
in other states were specific rates, varying 
with the physical volume of sale. During 
the past decade, states have been turning 
to an across the boards percentage rate 
applied to all non-cigarette tobacco. There- 
fore it is suggested and recommended that 
an excise tax of 20% at manufacturer's 
prices be imposed. 
REVENUE EFFECTS 

Using this 20% rate to project Florida 
revenues in 1961 and 1962 it is estimated 
that three million one hundred thousand 
dollars in additional revenue would result. 
This tax levy at this rate would be roughly 



comparable to that of the cigarette tax 
rate. The existing administrative machin- 
ery to collect the cigarette tax could read- 
ily be employed to collect non-cigarette 
tobacco taxes at little extra cost. Of this 
$3,100,000, the share going to municipali- 
ties would be $2,200,000. 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation amending Sec- 
tion 210.01, Florida Statutes to define to- 
bacco products; amending Section 210.02, 
Florida Statutes by adding a new section 
numbered (8) extending the cigarette tax 
to other tobacco products. 

Be It Enacted by the Legislature of the State 
of Florida: 

Section 1. Section 210.01(1), Florida Stat- 
utes is amended to read as follows: 

210.01 Definitions. — When used in this 
chapter the following words shall have the 
meaning herein indicated: 

(1) "Cigarette" means any roll for smok- 
ing made wholly or in part of tobacco irre- 
spective of size or shape, and whether or not 
such tobacco is flavored, adulterated or mixed 
with any other ingredient, the wrapper or 
cover of which is made of paper or any other 
substance or material except tobacco. 

(2) "Tobacco products" means any cigar 
or roll for smoking other than a cigarette 
made in whole or in part of tobacco and any 
tobacco other than cigarettes prepared or 
processed for consumption by smoking, chew- 
ing, or as snuff. 

Section 2. Section 210.02, Florida Statutes 
is amended to read as follows: 

Section 210.02 Cigarette tax imposed; col- 
lection, credit for municipal tax, etc. — (8) 
The excise tax on tobacco products shall be 
20% of the wholesale sales price, and collected 
as provided in this chapter for cigarettes. 

Section 3. This act shall become effective 
immediately upon becoming law. 



&3 



15 



16 
17 

18 
19 



20 



21 



16. DOG RACING 

Repeal Section 550.162, Florida Statutes, 
which provides a daily operational cost al- 
lowance to dog tracks. 
REASONS FOR RECOMMENDATION 

The Committee's study of race track in- 
vestments, profits and taxes, reveals little 
justification of the operational cost allow- 
ance on dog tracks. The repeal of the 1955 
Relief Statute giving the dog tracks a re- 
bate of seven hundred dollars a day would 
correct an inequity. 



REVENUE EFFECT 

The repeal of this statute would result 
in approximately $1,000,000 a year in ad- 
ditional tax revenue. 

A BILL 
TO BE ENTITLED 

AN ACT relating to taxation repealing Sec- 
tion 550.162, Florida Statutes which pro- 
vides a daily operational cost allowance to 
dog tracks. 

Be It Enacted by the Legislature of the State 
of Florida: 

Section 1. Section 550.162, Florida Stat- 
utes is hereby repealed. 

Section 2. This act shall become effective 
immediately upon becoming law. 



n 



16 
17 

18 
19 



20 



85 



21 



MISCELLANEOUS TAXATION; 
FEES AND LICENSES 
17. ESCHEATMENT 

Enactment of uniform escheatment law 
to provide for escheat of unclaimed de- 
posits in banks, insurance companies, car- 
riers, private utilities, municipal utilities 
and court registers to the state school fund. 
REASONS FOR RECOMMENDATION 

The problem of escheatment is one with 
which the Legislature has been concerned 
for several sessions. The 1959 Legislature 
created an Interim Committee to study 
thoroughly, the matter of escheatment and 
present a recommendation to the 1961 Leg- 
islature. The Interim Committee on Fi- 
nance and Taxation has worked very close- 
ly with the Legislative Escheat Committee 



and has held a joint public hearing with 
this Committee to hear expressed, the 
views of all interested and affected per- 
sons. The Legislative Tax Committee, 
rather than making a separate proposal 
in this regard, endorses and adopts the 
recommendation of the Legislative Escheat 
Committee. 
REVENUE EFFECTS 

It is tentatively estimated at the time of 
printing this report, that the adoptment of 
the uniform escheat act would result in 
the escheat of some two and a half million 
dollars to the state. In addition, the fund 
could expect to benefit each year, in the 
amount of several hundred thousand dol- 
lars. 

No Bill Submitted. 



17 



18 
19 



20 



87 



21 



18. UNEMPLOYMENT COMPENSA- 
TION 

Amend Section 443.04(2) (b) relative to 
computation of average weekly wages of 
individual. 
REASONS FOR RECOMMENDATION 

From testimony presented at public hear- 
ings and from consultation with various 
industries, the Committee recommends 
amending Section 1 (2) paragraph 6 of 
Section 443.04, Florida Statutes, by insert- 
ing the following: 

The average weekly wages of certain in- 
dividuals shall be computed by dividing 
its total base periods wages, by the number 
of weeks in such base period with which 
he was paid wages for insured work. 

This would have the affect of return- 
ing to the original Senate Bill No. 215, 
introduced by Senator Stratton in the 1959 
Session. The present law calls for using 
the highest quarter as a basis instead of 
the average weekly wage. This penalizes 
the best workers in seasonal employment 



who are able to make peak salaries at the 
height of the season. This subject area 
again, was not one of the primary respon- 
sibilities of the Legislative Interim Com- 
mittee on Finance and Taxation, but in 
view of its broad interest in the several 
areas of taxation, it was determined that 
this matter should be considered and in- 
cluded as a recommendation. 

Suggested Draft of Unemployment Com- 
pensation Bill: 

A BILL 

TO BE ENTITLED 

AN ACT relating to unemployment compensa- 
tion amending Chapter 443.04 Florida Stat- 
utes relative to the weekly benefit amount. 

Be It Enacted by the Legislature of the State 
of Florida: 

Section 1. Chapter 443.04(2) (b), Florida 
Statutes is amended to read as follows: 

Section 443.04 Payment of benefits. — (2) 
(b) The average weekly wages of such in- 
dividual shall be computed by dividing his 
total base period wages by the number of 
weeks in such base period in which he was 
paid wages for insured work. 

Section 2. This act shall become effective 
immediately upon becoming law. 



18 



19 



20 



89 



21 



19. AUTOMOBILE TRANSPORTATION 
MILEAGE TAX 

Transfer functions of the Comptroller's 
Office relative to this tax to Railroad and 
Public Utilities Commission. 
REASON FOR RECOMMENDATION 

Chapter 323, Florida Statutes, governs 
automobile transportation companies. This 
section is administered by the Florida Rail- 
road and Public Utilities Commission with 
exception of portions of Sections 323.09; 
323.10; 323.15; and 323.16, which impose 
certain duties upon the Comptroller rela- 
tive to reporting, collection, and distribu- 
tion of taxes. 

This results in difficult enforcement and 
confusion as to functions. Section 323.09 
( 2 ) is confusing as written the first portion 
states "If the state comptroller shall report" 
—the last sentence states "It shall be the 
duty of the comptroller" to report to the 
commission such violations as contained 
therein. This portion of the statute has 
been interpreted that the comptroller shall 
only make a monthly statement when the 
carriers have failed to file a monthly re- 
port but even from such a report it can- 
not be determined that the carriers are 
operating in compliance with the certifi- 
cate issued. This can only be determined 
by the commissions inspectors over which 
the comptroller has no control. 

Under Section 323.10(3) if the comp- 
troller reports a carrier is not paying mile- 



age taxes the ultimate burden of proof 
rests with the certificate holder and any 
records, proof or hearings in connection 
therewith is handled by the commission, 
not the comptroller. 

Section 323.15 provides that the comp- 
troller shall collect certain taxes as out- 
lined at the rate prescribed but allows the 
commission to prescribe a reasonable de- 
posit to be paid in advance to the comp- 
troller. 

Section 323.16 directs the comptroller 
to keep certain records and to distribute 
funds collected as outlined by this sec- 
tion. 

Since the enforcement of the entire chap- 
ter 323 is vested in the Florida Railroad 
and Public Utilities Commission it is here- 
by recommended by the Committee that 
the collection of these said taxes also be 
vested in the Commission with the entire 
collection less the $25 allocable to cities 
and towns be paid to the general revenue 
fund the same as fines and penalties im- 
posed by the commission. 

Suggested Draft of Automobile Trans- 
portation Mileage Tax Bill. 

A BILL 

TO BE ENTITLED 

AN ACT relating to taxation; amending Sec- 
tion 323.15, Florida Statutes; 323.16, Flor- 
ida Statutes; 323.09, Florida Statutes; re- 
moving from the administration of auto- 
mobile transportation companies any du- 
ties imposed upon the State Comptroller; 



91 



19 



20 



21 



providing payment of funds to General Rev- 
enue. 

Be It Enacted by the Legislature of the State 
of Florida: 

Section 1. 

Section 323.15, Florida Statutes, is amend- 
ed to read: 

Section 1. There shall be collected from 
every auto transportation company as herein 
defined to which has been granted a certifi- 
cate of public convenience and necessity or a 
permit authorizing it to engage in the trans- 
portation of passengers or freight, or both, 
and from every such auto transportation com- 
pany to which no such certificate or permit 
has been granted but whose transportation 
operations are not exempt from the provi- 
sions of this chapter, a mileage tax of one- 
half cent per mile on all buses with a capac- 
ity of ten passengers or less and mileage tax 
of three-fourths cent per mile on all buses 
with a capacity of not more than twenty pas- 
sengers nor less than ten passengers, and a 
mileage tax of one cent per mile on all buses 
of the capacity of more than twenty passen- 
gers nor less than ten passengers, and a mile- 
age tax of one cent per mile on all buses 
of the capacity of more than twenty passen- 
gers ; and a mileage tax of one-half cent per 
mile on all trucks or trailers with a factory 
rated load capacity of less than five thousand 
five hundred pounds, coming within the terms 
of this chapter, for every mile traveled for 
compensation by the motor vehicles of such 
auto transportation company over the public 
highways of this state; and a mileage tax of 
one-half cent per mile on any tractor-semi- 
trailer combination, for each mile traveled 
for compensation over the public highways of 
the state; provided, however, that at the time 
of issuing any permit hereunder, the railroad 
and public utilities commission may prescribe 
a reasonable deposit to be paid in advance to 
apply as an advance payment upon the mile- 
age tax herein levied ; which said amount shall 
be credited to said holder of such permit and 
the difference between the said amount and 
the correct amount of said tax shall be adjust- 
ed with the said holder of such permit. The 
mileage tax . herein provided shall constitute 
a lien upon the real and personal property of 
said auto transportation company prior to all 
other liens except those for taxes due the 



state, enforceable by the state as statutory 
liens under chapter 86. 

Section 2. In order to ascertain the bus 
mileage of every passenger bus and the truck 
mileage of every freight truck traveled by 
the holders of certificates or permits, the 
commission shall prescribe the records to be 
kept by said holder of such certificate or per- 
mit and within thirty days of the end of each 
current month the said holder of a certificate 
or permit shall file with the commission a 
statement verified by an officer, if the holder 
of such certificate or permit is a corporation, 
or if the holder of such certificate or permit 
is a person, then by such person, showing 
the mileage made by said holder of such cer- 
tificate or permit during the said month and 
shall at the time of filing such report pay 
to the commission the tax reflected by such 
report. The mileage tax provided for in this 
section shall be in lieu of all other taxes and 
fees of every kind, character and description, 
state, county or municipal, including excise 
and license taxes levied or imposed against 
such auto transportation companies, or the op- 
eration of such business and facilities thereof, 
or their property, except ad valorem levies 
upon the property other than motor vehicles of 
such auto transportation companies and except 
the gasoline tax and motor vehicle fuel tax, 
and except the motor vehicle license tax now or 
hereafter provided for by law. 

(3) The books and records of all auto 
transportation companies shall be at all times 
open to inspection of the commission or any 
agent by it appointed for such purpose. The 
commission shall keep a true and accurate list 
of all auto transportation companies to whom 
certificates sahll be issued with the post-office 
address of each. 

Section 2. Section 323.16, Florida Statutes, 
is amended to read: 

Section 323.16 Disposition of monies col- 
lected. — The commission shall keep a separate 
account of all monies collected under this 
chapter. Sufficient monies for the adminis- 
tration of the provisions of this chapter shall 
be included in the biennial appropriations act. 
All the balances shall be distributed as fol- 
lows: 

(1) Twenty-five dollars annually from each 
certificate holder to all incorporated cities and 



92 



towns where any such auto transportation 
companies maintain depots, warehouses, sta- 
tions or agencies in such city or town. 

(2) The remainder of such fund shall be 
placed in the state treasury to the credit of 
the general revenue fund. 

Section 3. Section 323.09, Florida Statutes, 
is amended to read : 

Section 323.09 Carrier may be fined, per- 
mit or certificate revoked, etc. — 

(1) Whenever any auto transportation 
company is found to be violating the provi- 
sions of this chapter or any of the rules or 
regulations prescribed by the commission, or 
any of the laws of the state touching motor 
vehicle operation over the public highways, 
the commission may, upon complaint or upon 
its own motion, issue its orders to the said 
auto transportation company notifying it to 
appear before the commission at a fixed time 
and place at which time and place the com- 
mission shall investigate such violations, and 
if it shall be satisfied after such hearing that 
said auto transportation company has violat- 
ed or refused to observe the laws of this state 
touching motor vehicle operations or any of 
the terms of the certificate or permit issued 
to such auto transportation company, or any of 
the commission's orders, rules or regulations, 
the commission may suspend, revoke, alter or 
amend any certificate or permit issued to such 
auto transportation company, or said com- 
mission may in its discretion, impose a pen- 
alty for each such offense of not more than 



five thousand dollars ; provided, either one or 
more of such impositions may be imposed al- 
ternately or cumulatively, which penalty shall 
constitute a lien upon real and personal prop- 
erty of said auto transportation company, 
prior to all other liens except those for taxes 
due the state, enforceable by the commission 
as statutory liens under chapter 86, the pro- 
ceeds of which shall be deposited to the 
credit of the commission to be used in the 
administration of this chapter ; provided, that 
the holder of said certificate or permit shall 
have the right of appeal and review as now 
provided by law from any such action by the 
commission. 

(2) If the commission shall determine that 
the holder of any such certificate or permit 
has failed to keep correct mileage books and 
records, or to make correct mileage reports of 
the mileage traveled over public highways in 
carriage authorized by its certificate or per- 
mit, or to pay mileage taxes as hereinafter 
provided, the commission shall forthwith is- 
sue citation against such auto transportation 
company requiring it to appear before the 
commission at a fixed time and place and show 
cause, if any, why it should not have pen- 
alty imposed against it or its certificate or 
permit revoked or suspended for a fixed pe- 
riod, as hereinbefore provided, in the dis- 
cretion of the commission. 

Section 4. All laws or parts of laws in con- 
flict herewith are repealed. 

Section 5. This act shall become effective 
immediately upon becoming a law. 



20 



93 



21 



20. FINANCING LOCAL 
GOVERNMENTS 

a. Just Value Bill (see explanation 
number 1 ) 

b. Exemption Bill (see explanation 
Number 3) 

c. State-Local Advisory Boards (see 
explanation Number 2) 

d. Extension of Excise Tax on Cig- 
arettes to Non-cigarette tobacco 
( see explanation Number 15 ) 

e. Consolidation of city and county 
assessment process. 

f. Bequire compilation of publica- 
tion of annual reports by munici- 
palities. 

REASONS FOR RECOMMENDATIONS 
At the outset of the study, the Interim 
Committee recognized the seriousness of 
the financial problems of local govern- 
ments. Much of the Committee's energy 
was expended in seeking methods to first, 
allow local governments to help themselves 
and second, provide assistance to local 
governments from the state level. 

The property tax has been and continues 
to be the mainstay of local finance. The 
recommendations of the Committee No. 1, 
the Just Value Bill; No. 2, the Exemption 
Bill; and No. 3, the State-Local Advisory 
Board, are attempts to allow local govern- 
ments to eliminate some of their property 
tax problems and to better utilize this rev- 
enue source. The adoption of Becommen- 



dation e, above, Consolidation of city and 
county assessment process, should no long- 
er be opposed by the cities as the just val- 
uation bill will eliminate the legitimate 
reasons that cities have had for resisting 
the city-county consolidation of assessment 
functions. The argument that the lower 
levels of assessment usually prevailing in 
the counties would leave the cities in fi- 
nancial difficulties would no longer be ap- 
plicable. The adoption of Recommenda- 
tion 20. f. will also help local governments. 
The absence of statewide reports of mu- 
nicipal assessments is a serious handicap 
to understanding property taxation, as is 
the present over-summarized state report 
of county assessments. Counties and mu- 
nicipalities alike should annually report 
their valuations, classified by type of prop- 
erty and use, to aid the establishment of 
tax policy at both the state and local lev- 
els. Beports of assessments as well as mu- 
nicipal revenue expenditure and debt, clas- 
sified by type should be annually filed with 
the state comptroller for suitable publica- 
tion. 

In addition to the property tax sources, 
the Committee explored further into local 
financial problems and sources of revenue 
without making specific recommenda- 
tions. These new revenue sources are pre- 
sented for consideration if needed. The 
adoption of one or more new taxes should 
be preceded by a canvass of possibilities 



95 



20 



21 



from which choices can be made consist- 
ent with local needs and state policies. The 
taxes, as summarized below, have varying 
degrees of attractiveness in terms of tax 
yield, equity and economic effect. The es- 
timates of revenue for the fiscal year 1961 
are here stated on a statewide basis, while 
estimates for county areas are shown in 
the attached tables. 

1. General Sales Tax 

The local nonproperty tax becoming 
most popular in the United States is the 
sales tax for administration either locally 
or by the state in behalf of localities. A 
1% local sales tax collected throughout 
Florida would yield an estimated $72 mil- 
lion; levied on the present state tax base, 
which exempts food for home consump- 
tion, medicine and gasoline. 

2. Gasoline Tax 

A 10 per gallon gasoline tax would yield 
$19,400,000 statewide. The present state 
and federal rates now total 110 per gallon. 
The irregular distribution of the state gas 
tax collections and their heavier weight on 
counties, under average in ability suggests 
that a local gas tax instead of being state- 
wide could be authorized for individual 
large or tourist counties. 

3. Motor Vehicle Fees 

Two possibilities are: local licenses at 
the flat rate of $10 per vehicle, producing 
$15 million, and a 50% addition to the pres- 
ent schedule of state fees, yielding $27,- 



600,000. The administration would be 
simplified through the county tax collec- 
tors to whom state licenses are now paid. 

4. Real Estate Transfers 

A \% rate would approach $35 million in 
yield in 1961-62 because of the large vol- 
ume of transfers in Florida. Despite the 
local variations in such transfers the size 
of the revenue would in general corre- 
spond with large local needs in rapidly 
growing areas and lesser needs in areas in 
which population is changing slowly. 

5. Business Gross Receipts Tax 
Uniform flat rate taxes on the gross re- 
ceipts of all types of businesses although 
widely used are also are widely condemn- 
ed because of the serious discrimination 
among businessmen having different vol- 
umes of sales, different price mark-ups and 
different margins of earnings. Even the 
attempt to introduce tax justice by classi- 
fying occupations, each paying at a sep- 
arate rate, leaves discrimination that is 
tempered only by the low rates often lev- 
ied at the local level. No revenue esti- 
mates are submitted. 

6. Gross Receipts Adjusted To a Value 
Added Basis 

To overcome the serious injustices in 
gross receipts taxes as well as to avoid 
cumbersome administration for classified 
rates, tax specialists urge the substitution 
of value added at the tax base. Value add- 
ed consists of gross receipts less the cost 



Sourck: Prepared by Dr. L. L. Quails, Fiscal Economist, Office of Florida State Budget Director. 



96 



of goods and materials for resale. Re- 
stated value added consists of payrolls, in- 
terest, depreciation taxes and profits. The 
concept markedly different from the in- 
come tax constitutionally prohibited in 
Florida. Restriction of the tax base to val- 
ue added eliminates the multiple taxation 
of the same materials as they pass from 
the processor on to the consumer. Like- 
wise eliminated are differences between 
businessmen with large sales volume and 
a small price mark-up and those with small 
sales and a large price mark-up. 

Instead of classifying businesses by oc- 
cupation, a distinctive advantage of the 
value added tax is a uniform rate apply- 
ing to all businesses in the form of a li- 
cense. At a 5 mill rate the value added tax 
is estimated to produce $32 million. One 
possibility is that the present state, county 
and municipal occupational licenses, whose 



revenue would approach $20 million in 
1961-62 be eliminated except for permits 
and fees to cover inspection policy. With 
such a substitution, the value added li- 
censes a rate of 10 mills, yielding $64 
million would be necessary to provide siz- 
able new revenue. 
7. Non-cigarette Tobacco 

Already included in the recommenda- 
tions is the extension of the excise tax on 
non-cigarette tobacco; Recommendation 
No. 15. When the present cigarette tax 
law was written in 1949 the prospective 
revenue was too small when similar rates 
were applied to non-cigarette tobacco. 
Florida's growth during the past decade 
coupled with simplified administration by 
a 20% tax at wholesale prices would re- 
sult in a 1961-1962 revenue of $3,100,000, 
of which the municipal share would be 
$2,200,000. 



ESTIMATED LOCAL GOVERNMENT REVENUE FROM ALTERNATIVE 
TAXES, BY COUNTY AREA OF COLLECTION: 1961-62 



County Areas 



1 Per Cent 
Sales Tax 



Florida Total 

Alachua 

Baker 

Bay 

Bradford 

Brevard 

Broward 

Calhoun 

Charlotte 

Citrus 

Clay 

Collier 

Columbia 



§72,000,000 

674,500 
32,000 

798,600 

57,300 

1,377,800 

6,372,900 

29,000 

178,300 
98,100 
88,800 

219,000 

168,600 



1 Cent 

Gasoline 

Tax 



Motor Vehicle Fees 



$10 
per Vehicle 



50 Per Cent 
Addition 



1 Per Cent 

Real Estate 

Transfers 



5 Mills 

Value Added 

Licenses 



20 Per Cent 

Non-Cigarette 

Tobacco 



$19,400,000 

268,500 
27,400 

274,700 
88,000 

491,500 
1,305,500 
25,300 
75,900 
58,500 
50,400 
89 ,700 

104,300 



$30,000,000 

379 ,000 

47 ,700 
343,200 

68,400 

739,600 

2,508,500 

30,900 
125,600 

67,500 
103,000 
120,000 

97,900 



$27,000,000 

318,000 
49,400 

308,200 
65,600 

614,700 

2,270,100 

30,100 

104 ,000 
61,100 
92,400 

106,300 
91 ,700 



$35,000,000 

278,000 
19 ,000 

198,000 
39 ,000 

894,000 

4,331,000 

16,000 

199,000 
75,000 
94,000 

198,000 
58,000 



$32,000,000 

318,000 

16,000 

321 ,000 

43,000 

1,334,000 

2,144,000 

9,000 

35,000 

22,000 

34,000 

85,000 

58,000 



$ 3,100,000 

39,700 
3,700 

36,200 
7,600 

86,700 

255,200 

3,000 

11,800 
5,200 
6,400 

12,200 
8,800 



97 



21 



ESTIMATED LOCAL GOVERNMENT REVENUE FROM ALTERNATIVE 
TAXES, BY COUNTY AREA OF COLLECTION: 1961-62 



County Areas 



1 Per Cent 
Sales Tax 



1 Cent 

Gasoline 

Tax 



Motor Vehicle Fees 



$10 
per Vehicle 



50 Per Cent 
Addition 



1 Per Cent 

Real Estate 

Transfers 



5 Mills 

Value Added 

Licenses 



20 Per Cent 

Non-Cigarette 

Tobacco 



Dade 

De Soto 

Dixie 

Duval 

Escambia . . . 

Flagler 

Franklin .... 
Gadsden .... 
Gilchrist. . . . 

Glades 

Gulf 

Hamilton . . . 

Hardee 

Hendry 

Hernando. . . 
Highlands. . . 
Hillsborough 

Holmes 

Indian River 

Jackson 

Jefferson 
Lafayette . . . 

Lake 

Lee 

Leon 

Levy 

Liberty 

Madison 
Manatee. . . . 

Marion 

Martin 

Monroe 

Nassau 

Okaloosa .... 
Okeechobee . 

Orange 

Osceola 

Palm Beach . 

Pasco 

Pinellas 

Polk 

Putnam 

St. Johns. . . . 
St. Lucie 
Santa Rosa. . 
Sarasota . . . . 
Seminole .... 

Sumter 

Suwannee . . . 

Taylor 

Union 

Volusia 

Wakulla 

Walton 

Washington . 



16 



,949 

78 

26 

,142 

,051 

61 

62 

177 

35 

13 

111 

27 

96 

65 

99 

246 

,424 

40 

293 

175 

31 

9 

600 

991 

846 

91 

2 

52 

841 

697 

156 

527 

182 

545 

67 

,722 

166 

,522 

261 

,740 

,540 

246 

264 

438 

192 

,432 

387 

69 

73 

105 

20 

,762 

20 

69 

45 



,200 
,800 
,600 
,300 
,200 
,600 
,900 
,600 
,800 
,200 
,800 
,600 
,300 
,500 
,000 
,200 
,700 
,900 
,600 
,200 
,900 
,700 
,900 
,800 
,400 
,000 
,400 
,500 
,400 
,200 
,000 
,100 
,400 
,000 
,000 
,800 
,000 
,400 
,100 
,300 
,800 
,400 
,500 
,300 
,900 
,200 
,800 
,700 
,400 
,300 
,100 
,500 
,700 
,800 
,400 



3,207,100 


46,800 


29 


600 


1,551 


100 


554 


800 


40 


400 


25 


800 


101 


600 


12 


300 


27 


700 


27 


400 


42 


800 


66 


400 


47 


200 


60 


400 


118 


100 


1,645 


300 


58 


200 


155 


200 


112 


900 


39 


200 


13 


400 


282 


300 


262 


200 


313 


500 


89 


900 


10 


200 


51 


700 


226 


200 


308 


600 


71 


100 


141 


200 


141 


600 


193 


300 


58 


300 


1,188 


200 


78 


800 


878 


600 


162 


900 


1,336 


900 


780 


600 


128 


800 


122 


400 


188 


900 


106 


900 


307 


600 


180 


500 


50 


100 


58 


000 


128 


800 


10 


400 


522 


500 


20 


400 


107 


100 


48 


100 



5,309 

65 

23 

2,234 

861 

35 

30 

115 

18 

13 

50 

21 

83 

54 

84 

155 

2,505 

37 

170 

134 

35 

13 

458 

409 

243 

54 

12 

48 

542 

294 

129 

257 

88 

298 

45 

1,723 

177 

1,486 

260 

2,713 

1,262 

157 

147 

240 

146 

646 

297 

52 

68 

49 

19 

837 

26 

72 

42 



,900 
,400 
,300 
,700 
,400 
,800 
,800 
,700 
,700 
,400 
,900 
,800 
,800 
,100 
,400 
,300 
,500 
,600 
,600 
,600 
,900 
,600 
,500 
,300 
,900 
,400 
,000 
,100 
,800 
,400 
,400 
,000 
,300 
,900 
,300 
,900 
,800 
,400 
,000 
,100 
,400 
,800 
,600 
,100 
,600 
,900 
,600 
,700 
,300 
,900 
,200 
,600 
,500 
,600 
,200 



4,936 

67 

27 

2,061 

754 

44 

25 

113 

18 

12 

47 

21 

93 

50 

88 

140 

2,552 

37 

158 

125 

35 

12 

450 

309 

203 

59 

11 

47 

453 

283 

104 

203 

82 

249 

46 

1,672 

151 

1,349 

231 

2,274 

1,308 

151 

129 

232 

125 

534 

294 

52 

63 

53 

17 

716 

28 

65 

43 



300 
500 
600 
300 
400 
000 
800 
200 
400 
900 
700 
700 
800 
800 
500 
500 
400 
700 
500 
700 
900 
400 
800 
700 
600 
500 
300 
600 
100 
200 
900 
300 
900 
800 
600 
500 
000 
800 
600 
800 
800 
300 
100 
100 
100 
900 
500 
700 
300 
000 
900 
400 
500 
300 
500 



6,990 



2,389 

783 

2 

34 

51 

8 

25 

21 

7 

95 

49 

112 

221 

2,890 

13 

170 

38 

16 

8 

269 

593 

352 

47 

5 

16 

497 

248 

53 

275 

91 

336 

35 

2,425 

116 

1,840 

280 

2,799 

1,321 

72 

28 

255 

40 

1,263 

646 

19 

23 

11 

5 

573 

12 

32 



,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 



8,828 

33 

25 

3,194 

1,039 

21 

18 

109 

4 

10 

56 

10 

35 

34 

49 

65 

2,822 

10 

133 

104 

16 

3 

225 

306 

357 

29 

10 

19 

275 

221 

73 

164 

98 

139 

11 

1,957 

44 

1,503 

99 

2,224 

1,108 

189 

145 

178 

101 

474 

165 

33 

35 

80 

4 

628 

6 

35 



,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 



051 


000 


7 


700 


2 


400 


204 


500 


47 


800 


3 


200 


4 


300 


14 


200 


1 


300 


1 


100 


4 


100 


3 


600 


8 


000 


6 


200 


9 


000 


18 


000 


276 


400 


1 


900 


12 


100 


13 


300 


2 


900 




900 


41 


800 


34 


100 


49 


600 


5 


700 


1 


000 


5 


100 


28 


100 


22 


700 


8 


900 


17 


800 


8 


800 


21 


100 


6 


300 


143 


500 


13 


700 


183 


700 


18 


400 


310 


800 


112 


200 


16 


500 


16 


700 


32 


400 


8 


200 


67 


400 


24 


700 


6 


100 


7 


400 


7 


500 


1 


400 


98 


800 




400 


5 


300 


3 


500 



Source: Prepared by Dr. L. L. Quails, Fiscal Economist, Office of Florida State Budget Director. 



98 



21. Continuance of Tax Study 

The continuous study of Florida's state 
and local tax structure is deemed essential. 
Further steps to establish a sound, long- 
range fiscal plan for the state must be 
taken. A similarly constituted legislative 
interim group is highly recommended. 

Areas of study which particularly need 
attention and which this Committee was 
unable to explore as thoroughly as desired 
are: 

a. Retail store licenses and occupational 
licenses 

b. Consolidation of tax collecting agen- 
cies at the state level 

c. Revamping license fees 

d. Others ( Constitutional Amendment ) 
a. Business Licenses and Fees 

This most difficult area of study was as- 
signed to the Miscellaneous Tax Subcom- 
mittee. The first task of the subcommittee 
in dealing with the problem was to sep- 
arate the regulatory licenses and fees from 
those levied for the privilege of doing busi- 
ness in the state, counties and cities. It 
was determined by the Committee that 
the control of purely regulatory licenses 
and fees should be retained by the various 
state agencies. 

The Committee discovered that state 
and county business licenses and fees are 
inextricably linked together by state law. 
To quote the 1957 report and recommen- 
dations of the Florida Citizens Tax Coun- 



cil "The present system of occupational 
and retailers licenses is archaic and in- 
equitable. They have grown over a period 
of many years with the addition of one 
business or occupation after another using 
many measures to determine the amount 
of the license fee. As a result the system of 
licenses lacks form or fairness." 

The 1957 Tax Council's Report was 
brought up-to-date by Dr. Wiley Kilpat- 
rick of the University of Florida. The Sub- 
committee studied this material and deter- 
mined that the present state and county 
system of licenses bears absolutely no re- 
lationship to the increase of Florida's pop- 
ulation or the expansion of it's economy. 
Many businesses are paying several city 
and several county license fees. The 
thought given to this problem by the Com- 
mittee was that a single occupational li- 
cense fee beyond those regulatory license 
fees required to safeguard the public 
should be established. Such a single license 
fee was considered with several purposes 
in mind. ( 1 ) Providing a source of revenue 
for cities and counties. (2) Reorganizing 
the tax structure of business and occupa- 
tional license fees on a basis related to 
ability to pay. (3) The substitution of 
such revenue for the present inequitable 
inventory tax. Several plans were care- 
fully considered. One being a bracket 
gross receipts method and another, a value 
added basis. Although the studies under- 



21 



99 



taken were quite comprehensive, because 
of the magnitude of the problem a rec- 
ommendation of the full Committee at this 
time is not completed. This is however, 
one of the areas that should receive pri- 
ority for future studies. 
Consolidation of Tax Collecting Agencies 

b. Numerous groups appearing before 
the Committee recommended the consol- 
idation of tax collecting agencies at the 
state level. There is at the present time a 
multiplicity of state agencies engaged in 
collecting the public revenue. The con- 
solidation of tax collection functions in 
other states has resulted in convenience to 
taxpayers, more efficient revenue collec- 
tion, less cost in collecting revenue and 
better relations with the taxpayers. Sev- 
eral plans for accomplishing this goal were 
proposed. The tax committee in this area 
again felt that insufficient study had been 
given to the problem and that a recom- 
mendation at this time was not warranted. 

c. Realignment of inspection fees. 
Inspection fees are usually levied under 

the concept of grant of a benefit. The cost 
or value of the benefit being the justifi- 
cation for the fee. The fees are generally 
incorporated as a part of business costs 
and shifted to the consumer. The Depart- 
ment of Agriculture is the principal inspec- 
tion agency. There are many types of in- 
spection fees collected by this agency 
which are placed in the general inspection 



fund. Twenty other sections of 13 Chap- 
ters of the Florida Statutes provide for 
inspection. The rates of these inspection 
fees vary, usually being a few cents per 
item. Each Agency responsible for collect- 
ing inspection fees was contacted at the 
outset of this study. Because of the re- 
organization of the Department of Agri- 
culture no change in their inspection fee 
system was recommended until further 
determination as to need for re-adjustment 
be made. Although the Committee did not 
have the opportunity to investigate this 
area as thoroughly as desired, it concluded 
that the inspection fee program as it is 
used in this state is not ideal. This is espe- 
cially true when the cross shifting of fee 
receipts occurs. Surplus revenues in a fee 
system create in effect a tax which is not 
the purpose of the inspection fee program. 
It would seem wise to seek more a realistic 
approach to this problem by balancing 
charges and expenses in each major cate- 
gory. This could and should be further ex- 
plored along with the other types of li- 
cense fees which are in effect state wide, 
d. Others (Constitutional Amendment) 
Among the other areas of study is the 
question of a Constitutional Amendment 
to allow the Legislature to classify prop- 
erty for tax purposes. The present Consti- 
tutional limitations severely restrict the 
Legislature in enacting needed, equitable 
tax changes. 



100 



These are only a few of the areas which 
need further study. The 1961 Legislature is 
urged to vest responsibility for tax study 
after this biennium in a new study group 
properly constituted and financed. Flor- 



ida's experience, both prior to and during 
the tax studies of the past year demon- 
strated the desirability of continuous rather 
than the intermittent study of tax prob- 
lems. 



101 



CONCLUSION 

A conclusion is defined as the "last part 
of anything." However, the conclusion of 
this Report should be the continuation of 
the attempt by the Legislature to provide 
Florida with a sound fiscal structure that 
will meet increased governmental require- 
ments without increasing and expanding 
the taxpayers burden. The Members of 
this Interim Committee have reached the 
conclusion that there is a solution to sound 
and equitable taxation in Florida. They 
also realize that a complete overhaul of the 
tax structure would not be possible (nor 
would it be feasible) at any one session of 
the Legislature. The Committee does be- 
lieve that the job can be done if the idea 



is not abandoned. The work of this Com- 
mittee to date, is a beginning of a long 
range program of providing for govern- 
mental services without placing an unjust 
burden on any one taxpayer or class of 
taxpayers. 

Changes that are made as a result of 
this study must be followed up and ap- 
praised. Untouched areas must be refined 
in the future. This can only be accomp- 
lished by going forward with a long range 
plan. How this is done is relatively unim- 
portant, whether by interim study Com- 
mittee or other properly constituted group. 
The most important thing is getting the job 
done. 



102 



AREAS OF STUDY FOR WHICH NO RECOMMENDATIONS ARE MADE 



1. Revenue Producing Changes in Sales Tax 

a. Amend Section 212.02(4) to extend tax to services 
involved in repairs to tangible personal property. 

b. Amend Section 212.02(4), Florida Statutes, to extend 
sales tax to personal services such as charges for laundry, 
dry cleaning, car wash, etc. 

c. Amend Section 212.08(6) to remove exemption on 
sales to farmers for equipment and parts. 

d. Amend Section 212.07(5), Florida Statutes, to extend 
sales tax to farm products when sold direct from producer 
and to suspend 90 day rule. 

e. Amend Section 212.08(3) to raise the rate of sales 
tax on purchase of motor vehicles from one to three percent. 

Increase 

f. Amend Section 212.08(6) to extend the sales tax to 
purchases made by commercial fishermen. 

g. Amend Section 212.08(8) (b) to extend the sales tax 
to professional services such as fees and charges by attor- 
neys, chiropractors, architects, accountants, engineers and 
barbers. 

h. Enact new statute extending sales tax to charges for 
privileges for personal participation, in games, sports, recre- 
ational activities, such as bowling, golf, swimming, fishing, 
tennis, amusement machines, etc. 

2. Gasoline Tax 

Increase rate of gasoline tax 

3. Beverage Tax 

Increase taxes on alcoholic beverages. 

4. Utilities; Gross Receipts Tax 

Increase gross receipts tax on utilities from one half to 



Revenue Estimate 
Per Annum 

8,185,000.00 



3,000,000.00 
5,292,000.00 

110,000.00 

17,362,268.00 
500,000.00 



15,000,000.00 



2,000,000.00 

19,400,000.00 

no estimate 



103 



three percent. 

5. Soft Drinks 

Extension of excise tax on soft drinks. 

6. Motor Boats 

Extension of property tax exemption to motor boats. 

7. Severance Tax 

Consider extension of severance tax to minerals and 
timber products. 



7,000,000.00 



no estimate 



no estimate 



2,500,000.00 



104 






c 



- 



Report and recommendations, 1 9 main 
336.759F637r 1959/61 C.2 



3 12b2 D35Tb flb37